In order for a bond to be included on the green bond indices, it must be labelled “green” by the issuer, at the point of issuance. However, not all bonds that contribute to climate change mitigation are labelled “green” and not all green financings are bonds. Nicole Martin, Managing Director, Green Evaluations, S&P Global Ratings, tackles this issue in a recent article, where she outlines the difference between labelled and unlabelled green bonds. She concludes that the environmental contribution of all financing instruments, whether they are labelled “green” or not, needs to be recognized. Ultimately, the goal of mitigating climate change doesn’t depend on the name of a bond.
To read the full article, please click here (behind a paywall).