The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

CSR: Impact reporting colours green bonds

Leading green bond issuers are working together to find a solution to one of the problems holding back the growth of the market – how to report back to fund managers on the environmental impact of their investments. The determination to find a solution on both sides is clear. The path to finding that solution remains elusive.

Wind farm Mexico-600

The developing green bond market has brought with it a new era in investor/issuer relations. Parties on both sides report a level of transparency and cooperation never experienced before. When it comes to impact reporting however, problems remain.

The VW emissions scandal blew a hole in hasapublic confidence in the way companies track their environmental efforts. This undoubtedly had knock-on effects on the green bond market. At the December COP21 climate change meetings in Paris, investors repeatedly referred to VW’s behaviour as an example of how hard it can be to trust the information they receive on use of proceeds for green finance.

The Paris Green Bonds Statement, backed by 27 global investors, representing over $10 trillion of total assets under management, made their expectations of issuers very clear:

“We encourage issuers to ensure transparency around the use of proceeds and their impact, and for corporate issuers to have credible independent reviews of the environmental credentials of climate bonds and green bonds and confirmation of the assets’ use of proceeds and resulting climate benefits,” the statement said.

It is clear the lack of reporting standards is a big problem for investors when it comes to relaying the outcomes of projects supported by green bonds.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree