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Perspectives

Green bonds: Financial instruments for accessing capital and financing the energy transition

Five steps to enhance transparency and credibility

The global energy transition from fossil-based energy sources to renewable alternatives is creating an increased demand for green bonds. These bonds are fixed-income financial instruments that raise capital for sustainable projects and aim to offer an effective way to finance the energy transition.

What every leader should know about sustainable financing

While green bonds are important for sustainable investing, they currently represent less than 3% of global bond market issuances. That presents an untapped opportunity to access new sources of capital through environmental, social, and governance (ESG) lenders and investors.

In this perspective, we’ll provide a holistic view of the green bonds market and cover stakeholder expectations for reliable reporting. Below are high-level takeaways from our recent perspective, as well as five key considerations before issuing a green bond.

  • Stakeholders expect green bonds reporting to have reliable data and a demonstrable environmental impact.
  • Scrutiny from investors will continue with the growing green bond market, which emphasizes the need for enhanced disclosure in sustainable financing.
  • A well-designed green bond framework and reliable reporting can provide transparency and quality that market participants expect, while also fueling the transition from fossil-based energy to renewable sources.

Five considerations before issuing a green bond

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ESG investing trends are ever-changing, but the interest in green bonds is here to stay. Prepare for the future by keeping a close eye on the green bonds market and how investors and regulators are responding.

Get in touch

                                                                                                       

Suzanne Smetana
Audit & Assurance Managing Director
Sustainability and ESG Services
Deloitte & Touche LLP
+1 617 960 5452

                                                 

Inna Macedo
Audit & Assurance Senior Manager
Sustainability and ESG Services
Deloitte & Touche LLP
+1 203 423 4406

                                                 

Mel Dubin
Audit & Assurance Manager
Sustainability and ESG Services
Deloitte & Touche LLP
+1 303 542 3967

 

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