Cutting Through Labels’ Noise in the Sustainable Bond Market: The Merits of a Research-Driven Framework.
27.11.2023 | 06:46 Uhr
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The Calvert Fixed Income team actively engages with Green Bond market players to promote robust sustainable financing frameworks that help effectively catalyse capital towards environmentally and socially impactful projects, transparent disclosures, and reporting.
With a steady supply of labelled Green, Social, Sustainability and Sustainability-Linked Bonds (i.e., Sustainable Bonds) having built up over US$3.6 trillion in outstanding value globally, sustainable investors can tap into a universe that has reached critical mass, improved liquidity and lowered pricing trade-offs versus vanilla bonds compared to the early days of these labels.
But investors should not be lured into dropping their guard. In this paper, the first of a series on Sustainable Bond investing, Calvert describes the growing opportunities associated with this market and the merits of conducting in-depth research on each transaction to determine the legitimacy of green and social claims, and discusses whether these instruments can contribute to an issuer’s decarbonisation and other sustainability objectives.
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