Green Bond issuance is surging, but not all Green Bonds are equal. Some carry a much greater ESG impact than others.
Issuers place the “green” label on their bonds—there is no standardised metric for green compliance, nor any penalties imposed for weak or non-compliance.
Without clear, comparable metrics, investors must rely on their own research.
This paper provides an overview of our proprietary Green Bond framework, which assesses the impact of a Green Bond based on credibility at the security and issuer level as well as the additionality of the bond in terms of its incremental positive impact on the environment.