Finding Gold in All That Glitters – Exploring Sustainability Bonds in Asia Pacific Region
INTRODUCTION
Green, social, and sustainability bonds in the Asia-Pacific market jointly reached USD 187 billion in 2019 and are expected to grow further. For sustainability-conscious international investors, there are two key challenges: the misalignment of expectation and standard-setting, and the expectation gap between the issuers’ use of proceeds and the quantifiable sustainability benefits achieved.
In this research paper, we provide a historical overview of the green, social, and sustainable bond market in the Asia-Pacific region. We then present the challenges faced by sustainability-conscious international investors and solutions that may be helpful in navigating those challenges. |
HIGHLIGHTS
As of December 31, 2019:
- Within our universe of green, social, and sustainability bonds, China market made up 58.3% of the total amount outstanding
- Our filtering process reduced the China market exposure from USD 109 billion to USD 37.2 billion
- The Solactive CarbonCare Asia Sustainability Bond Index generated an annualized total return of 1.42% measured in USD over the past two years
To find out more about our Sustainability Bonds in Asia Pacific Region, please click here or on the graphic below to download our white paper.