Europejski Urząd Nadzoru Giełd i Papierów Wartościowych (European Securities and Markets Authority - ESMA), Europejski rynek zrównoważonego długu - czy emitenci korzystają z efektu cenowego ESG?

6 October 2023

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Sustainable Finance

The European sustainable debt market – do issuers benefit from an ESG pricing effect?

Summary

Issuance of sustainable-labelled debt has soared over the last years, benefitting from an increasing investor appetite for financial products that contain a sustainability element. At the same time, research suggests that sustainable-labelled debt issuers may benefit from a pricing advantage, the so-called ‘greenium’, which is often attributed to investor’s willingness to forego returns in exchange for the sustainability element of the financial product they are investing in. However, existing evidence has not been conclusive so far regarding the existence of a definite pricing advantage, and it further focuses mainly on green bonds only. This article expands the analytical work to all environmental, social and governance (ESG) bond types and identifies a set of key factors potentially causing the greenium. The topic is...