The FT has published this chart this morning:
As the FT notes:
Green bonds are red hot. Issuance smashed through analysts' projections in 2019 and is set to continue expanding this year as sustainability-minded investors snap up almost every deal that hits the market.
But I have a question, and that is how do we know that these bonds are green? There is, as yet, no green accounting, at all. And as a result we have to take the word of these companies that they are using the proceeds of these bonds for green purposes.
This is one of the many reasons why we need sustainable cost accounting, or sustainable cost reporting as I am beginning to rename it, because that means I can ask 'what's your SCORE?', which most companies will not be able to say right now.
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The best way to analyse a Green bond is for a professional investment analyst to review the bond, not for an accountant to invents new range of accounting metrics.
Oh, that worked really well before 2008 didn’t it?
Please don’t be a fool
What green bonds were issued in 2008? (I am not aware of any).
If you are referring to Mortgage backed debt, what proportion of GBP or EUR AAA-rated mortgage backed debt failed to pay scheduled interest and Principal?
If you had any intelligence you would realise what I am referring to
You have also had multiple identities here today
Please don’t call again
Agreed, btw whatever happened to the old “Triple Bottom Line”?
It never made a lot of sense