ESG Bonds

Overview

Global ESG bond scale is smaller than ESG securities. ESG bond investors pay more attention to whether the issuer can repay the borrowings, while ESG securities investors value the future growth ability of investees. In terms of engagement, ESG bonds do not have voting rights and have weaker impacts than securities.

Whether they are green bonds, sustainable bonds or sustainability-linked bonds, they must comply with the ESG framework in terms of classification, issuance and disclosure. The International Capital Market Association has proposed a variety of ESG bond standards, and various jurisdictions are also forming their standards.