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This month in a nutshell

  • Green buildings are crucial to achieve the global goals of zero emissions. ISSB standards and new EU regulations could help make buildings greener. Companies such as Alphabet and La Poste already use sustainable bonds to finance green buildings, but this remains marginal.
  • The European Union has introduced the Corporate Sustainability Reporting Directive (CSRD). It came into force on January 1, 2024 and sets new standards for extra-financial reporting.
  • The ICMA has set new guidelines on blue bonds aimed at encouraging sustainable investments in this area, thereby addressing current challenges while capitalizing on the opportunities offered by a sustainable blue economy. Blue bonds operate on the same model as green bonds with are related to seas and oceans.
  • On December 12, the French Minister of the Economy, Finance and Industrial and Digital Sovereignty, announced the publication of new guidelines for the French SRI Label. They reinforce the requirements for security selection and climate impact becomes a Label’s key principle.
  • BP and Equinor are canceling the New York offshore wind project known as “Empire Wind 2” particularly due to the increase in the price of materials. The project intended to be constructed 15 to 30 miles off the coast of Long Island providing clean energy to hundreds of thousands of people.

Figure of the month

~ $1 trillion of sustainable bonds forecasted for 2024.

Source: HSBC, November 2023

Chart of the month

Distribution of sustainable bond issues (USD bn eq.)

distribution-of-sustainable-bond-issues-usd-bn-eq

Source: Market sources + Ostrum AM

  • Timothée Pubellier, CFA

    Timothée Pubellier, CFA

    Senior Fixed Income Portfolio Manager

Reading time : 15 min.
INSIGHTS CSR / ESG
Highlights The sustainable bond market has seen significant growth since its inception in 2007. Issues are now approaching $1 trillion a year and account for more than a quarter of new issues in the eurobond market. Sustainable bonds can amplify investors’ approach to sustainable investing, and finance a climate transition respectful of societies and economies. Long-term stability is critical for fixed income investors, and sustainability-focused companies are more likely to minimise transition and financial risks, while having a closer engagement with stakeholders.
02/23/2024
Reserved for pros
Reading time : 5 min.
INSIGHTS CSR / ESG
Every month, find out all about the sustainable market bonds news in our newsletter « MySustainableCorner ».
12/15/2023
Reserved for pros
Reading time : 15 min.
INSIGHTS CSR / ESG
Illustration with Ostrum AM’s Climate and Social Impact Bond strategy
12/08/2023
Reserved for pros