The amount of money invested in Environmental, Social and Governance (ESG) funds has increased exponentially in the past year, and as banks and investors increasingly turn their attention to ESG factors, companies are also increasing their focus on ESG. As part of this trend, ESG-type criteria are appearing with increasing prevalence in the bond and loan markets, and new opportunities within sustainable finance are opening up as a result of major financial institutions making their own commitments with respect to ESG criteria. In this primer, we give an introduction to sustainable finance and take an in-depth look at “Green Bonds,†“Green Loans,†and performance-specific sustainability linked debt instruments.
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