ESG bonds and their use cases explained
Interest in ESG bonds has been steadily growing but what exactly are they and why are they being bought and sold?
- Deutsch ESG-Anleihen kurz erklärt
- Español Explicación de los bonos ESG y de su utilización
- Português Como funcionam os títulos de dívidas "sociais"?
- 中文 ESG债券及其应用案例解读
- Français Que sont et à quoi servent les obligations ESG?
- عربي ما هي سنداتُ الحوكمة البيئية والاجتماعية وحوكمة الشركات؟ ومتى يتم استخدامها؟
- Pусский Облигации ESG и примеры их использования
- 日本語 ESG債って何？
- Italiano Cosa sono e come vengono usate le obbligazioni ESG
Since the European Investment Bank issued the first ESG bond in 2007, many companies and businesses have followed suit by producing their own.
The term ESG bonds stands for Environmental, Social and Governance bonds. They are categorised as green, social, sustainability and sustainability-linked depending on their end goal. The first three are loans to fund specific projects, the latter are used to attain a company's sustainability targets.
Today, ESG bonds account for 10% of all bonds worldwide but they're attracting a vast and diverse base of investors and companies. ESG bonds are contributing to the achievement of global climate and social goals, but clear guidelines to gauge their credibility and impact do not as yet exist.
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