Insurance companies looking to diversify their fixed income portfolios, which we reported on today, could consider green bonds. Data showed that issuance last year doubled and even tripled among corporates.
Corporates issued $28 billion (€32.5 billion) worth of green bonds last year as energy companies, auto makers, and tech companies tapped the green bond market, says a S&P Global Ratings report out today.
The report said this year issuance is expected to more than double again to $200 billion. This figure is higher than the figure that Nordic bank SEB predicted yesterday.
Last year green bond issuance doubled from $42.4 billion in 2015 to nearly $83 billion, according to the S&P report, called ‘Green finance: The next driver of real growth?’.
S&P said that not only have long-term investors begun to diversify their portfolios away from climate-risk and carbon-based investment, “but it seems that many are starting to see that managing environmental exposure may be more than risk management; it may be good for business”.
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