Journal article

Are green bonds funding the transition? Investigating the link between companies’ climate targets and green debt financing

  • Tuhkanen, H and Vulturius, G. (2020), Are green bonds funding the transition? Investigating the link between companies’ climate targets and green debt financing. Published online: 14 Dec 2020

  • Authors: Heidi Tuhkanen and Gregor Vulturius

  • Topics and subtopics: Green bonds, Impact reporting, Sustainable finance, Climate targets, CSR

  • Category: Journal article

  • Country: Sweden

Are green bonds funding the transition? Investigating the link between companies’ climate targets and green debt financing.

A new study by the Stockholm Environment Institute (SEI) and the Stockholm Sustainable Finance Centre (SSFC), investigates the question of whether green bond issuers are using green debt to manage their transition risk. Researchers asked the question what kind of climate targets have been adopted by green bond issuers, to what extent are green bond frameworks connected with issuers climate targets, and to what extent does green bond reporting enable transparent and comparative assessment of issuers’ progress on climate targets.

The study found that out of the twenty issuers, only eleven had set climate targets beyond 2025 and six had not set any absolute emission reduction targets. The lack of long-term mitigation targets and in some cases absolute targets suggests that green bond issuance on its own is not indicative of issuers having an ambitious strategy to lowering emissions and managing transition risks.

AUTHORS

Expertise: Local level and urban sustainability, sustainability and environmental management (systems, indicators, and tools), Climate change mitigation and adaptation, marine issues
Heidi Tuhkanen
Senior Expert, Stockholm Environment Institute (SEI)
Gregor Vulturius is a Head of Operations and Engagement. He has a background in spatial planning, climate change adaptation and mitigation and disaster risk management.
Gregor Vulturius
SSFC Head of Operations and Engagement