Investing with a good green conscious?
In 2021, the EU started to channel more funds into sustainable investments. The initiative stems from a report by the Commission’s Sustainable Finance Expert Group in June 2019 and is currently being developed.
In this initiative, the EU aims above all to address the ESG criteria, i.e.:
An EU standard for green bonds will clearly define which assets and projects can receive funding.
The European Investment Bank (EIB) as a global pioneer in green bonds.
Development of the international green bond market
But what are green bonds?
Green bonds a variety of impact investing: thematic bonds linked to predefined purposes. Green bonds are fixed-income securities that offer issuers and investors the opportunity to support environmental and climate protection projects.
Looking back at the short history of green bonds, we see that Europe was initially the pioneer. With 45 per cent of the issues, Europe is still proportionally the single most important region. The driving force of the EIB obviously has a significant impact here. However, if we differentiate by country, in 2019, the USA ranked well ahead of China with an issuance volume of USD 51.3 billion and France with USD 30.1 billion.
The issuers of green bonds are often not so clean at all!
- Energy 34 %
- Real estate 26 %
- Transport 15-20 %
- Water 10 %
So it's all just greenwashing?
The establishment of standards for green bond issuance.
We are watching the development of the green bond segment very closely!
It is considered essential for impact-oriented investing and thus for green bonds to ensure a high degree of transparency of the investment objectives and to achieve target-oriented use of the funds. Following the publication of the “Green Bond Principles” (GBP) and later the “Climate Bond Standard” (CBS), issuing companies can now obtain a CBS seal. The initiative launched by the EU will also be more comprehensively based on ESG objectives, with an additional focus on human rights.
We are monitoring the development of the green bond segment very precisely
“There is no question that bonds (especially institutional corporate bonds) belong in any well-diversified portfolio!”
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