• Nicholas Gandolfo, Director, Corporate Solutions

In this episode, Nick and Marika provide a run-down of notable deals in the sustainable finance market, from sovereigns issuing sustainable debt, to corporate activity in green and social bonds and loans, to the introduction of new products and structures. They also answer audience questions about the outlook for labeled transition bonds and possible biodiversity-related indicators for linked transactions.

While evidence of a premium for green bonds – or greenium – continues to emerge, a similar advantage is being seen for social bond issuances. According to research, compared with conventional bond equivalents, social bonds received a yield discount of around 12 basis points at issuance. The explosion of social bond issuance in response to the COVID-19 pandemic, and the oversubscription of social bonds are contributing to this social premium or “socium” found for some social bond issues.

The World Benchmarking Alliance published a report examining the social elements of companies’ low carbon transition. The report assessed 180 companies across three sectors – oil and gas, electric utilities, and automotive – and found that the majority of high-emitting companies are not taking action to move toward a just transition. Other key findings suggest the people most at risk are left out of decision making; companies will need to reskill their workforce as part of their transition plans; companies are not using their influence to advocate for a just transition; and that a just transition needs to be underpinned by companies’ respect for human rights. Hopefully, we’ll see some of the findings from this report reflected in the performance indicators and use of proceeds of sustainable finance transactions going forward.

As more and more companies are thinking about incorporating ESG considerations into their strategies, Sustainalytics Corporate Solutions wants to ensure they start off on the right foot. Download our practical guide to starting a corporate ESG strategy. Discover key issues that could affect your company, the benefits of action, and the risks of inaction. 

01:45

Market news

02:09

Ideas for a "greener" holiday season

02:26

December market volumes

03:12

EU taxonomy discussions continue

03:34

Steeper borrowing costs for sovereigns slow on climate

04:21

Socium for social bonds

05:01

World Benchmarking Alliance just transition corporate assessments

05:49

Data centers and technology in green finance

06:48

Using avoided emissions as targets

06:54

SBTi report on private equity

07:22

TPI report on pathways for other high-emitting sectors

08:12

Green bonds overview

13:23

Social bond overview

15:03

Green loans overview

16:19

SLB overview

19:30

Audience questions

24:22

SLL overview

28:27

Labeled products, transition, and regulatory overview

• Bloomberg: Australia Seen Facing Steeper Borrowing Costs If Slow on Climate