Green Bond Surge In Europe

With green bond issuance showing strong growth in 2017 – up an impressive 32.3% in 2017 year to date – how does an investor measure the “greenness” of their bonds? HSBC, reviewing the methodologies available, thinks Standard and Poors has developed a methodology that will fairly treat all geographic regions, including the particularly troublesome emerging markets, while evaluating the “greenness” fairly across usage categories. As green bond issuance in 2017 is changing, with duration and issuance type leading the way, the method of encouraging global environmental responsibility through incentive rather than dictating it is a trend that continues to flourish.