Global Sustain
Sign up to the newsletter



Member: Gold
Since: 13.06.2017
Trucost is part of the S&P Global family, operated by S&P Dow Jones Indices

20 Canada Square Canary Wharf, E14 5LH London, United Kingdom

TRUCOST: How do labeled green bonds measure up?

10.11.2017 Share

Green finance is a fast-expanding market – with green bonds leading the trend. However, there are many other types of “green” financings in the wider, climate-aligned marketplace.

In light of this, S&P Global Ratings has applied their Green Evaluation to 282 vintage green bonds asking: How do labeled green bonds measure up?

Key takeaways:  
  • The majority (63%) of the green bonds in the sample received an overall Green Evaluation score of E2 (where E1 contributes the most to meeting climate change targets, and E4 contributes less);
  • This outcome is because projects typically finance by green bonds – namely green energy, green buildings, and wastewater treatment plants – contribute significantly to the transition to a low-carbon economy and to the achievement of environmental and climate-related policies;
  • The average governance and transparency scores (60 and 51 respectively) in the sample reflect the comparatively low level of disclosure in the vintage green bond market and the need for better transparency of the environmental contribution of green bond transactions.