How to make ethical investments that are good for the environment.
Perhaps the shock to the market dates one of the largest international investment funds, the BlackRock , which had provided precise indications to its operators to turn towards investments in companies that were focused on the attention of the environment in their businesses. The Green Bond concept starts from this attention to the relationship between business and sustainability.
What are Green Bonds?
They are financial instruments, specifically corporate bonds , whose emissions are linked to projects in the field of the circular economy, renewable energies, the correct use of environmental resources, pollution prevention, transport and infrastructure, which have as their purpose the improvement of one or more parameters related to environmental sustainability.
Who issues Green Bonds?
Until a few years ago, bonds were issued mainly by supranational financial structures, such as the European Investment Bank or the World Bank , which managed large-scale international projects. Over the past few years, with the growing attention of the environment by citizens , these securities have also been issued by individual companies that could demonstrate that they have a project that falls within the parameters mentioned.
The first Green Bond was issued in 2007 by the EIB which has so far raised investments to finance 256 projects in 52 countries around the world .
The interest from investors was so important that, from 2016 to the beginning of 2020, the emissions on the market have grown, from 750 million euros to more than 50 billion worldwide . In 2019 alone, the growth of green bonds was 50% on 2018, which expressed in value, correspond to + 170 billion euros.
Which countries issue the most green bonds?
Over the years, states have also issued government bonds that have, for example, the energy efficiency of public buildings or schools, the hydrogeological restructuring of risk areas and other initiatives. We can count among the issuing countries, Italy, Holland, Spain, Ireland, France and Germany.
Who guarantees the “Green” standards?
Until recently, every issuer, large or small, did it alone, so the relationship with the investor was exclusively fiduciary. Today there is the ICMA which is the International Capital Market Association , the largest international capital association, which has set some mandatory points to boast the green brand.
Let’s see what they are:
To give an example, we can cite the case of the oil giant Repsol that had acquired the green certificate from Vigeo Eiris in 2017, on the basis of a corporate project that aimed at a reduction of 1.2 million tons of CO2 per year, modifying then his own business model, which he did not do, being cited by the NGO CBI as not worthy of that certificate .
A new regulation for the market
The Green Bond phenomenon is taking on such vast boundaries that international regulation has also become necessary to protect investors. In February 2019 the European Commission and the EU Parliament issued a regulation defining for which families of projects companies can ask the market for money under the banner of green bonds.
The families identified are:
During 2021 the rules will be issued that will detail the individual families of activities that will be indispensable to remove the shadows of greenwashing .
VISUALIZZA LA POLICY COMPLETA