27 Jul Impact Reporting in the Green Bond Market, Climate Bond Initiative Study
The Climate Bond Initiative recently launched a study entitled Post-Issuance Use of Proceeds – Trends and Best Practice. The report is Climate Bonds Initiative’s first detailed study of current practice around post-issuance reporting of green funding and monitoring of green bond allocation. The Post-Issuance Use of Proceeds – Trends and Best Practice data pool is 191 green bonds from 146 issuers to the value of USD 66bn all issued before 1 April 2016.
Impact reporting indicates any type of reporting (by a green bond issuer on the bonds’ use of proceeds) that looks to quantify the climate or environmental impact of a project or asset that is expressed numerically. This level of reporting is gaining prominence in green bond markets and helps investors measure positive externalities through their investments. Of the 191 green bonds in the reports’ data pool, some form of impact reporting was in place for 38% of bonds. The report also finds that the percentage of issuers providing impact reporting has been rising on a yearly basis, from 33% in 2013 to 47% in 2016.
Full report is available here.