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.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
ESG

Green finance: Calls for transition bonds gain traction

New asset class needed if climate change targets are to be met; the green bond principles could provide a framework.

green world 780



A growing number of bankers and investment managers are trying to develop a transition bond market that will allow carbon-intensive companies and industries to finance their gradual shift away from fossil fuels. 

Last month, AXA Investment Managers (IM) issued a statement calling for the adoption of transition bonds. 

Yo Takatsuki, head of ESG research and engagement at AXA IM, says it is hoped that it will lead to the development of a working group, so that in 12 months’ time a formal set of principles will be in place to support the growth of transition bonds.

AXA IM is one of the largest holders of green, sustainable and social bonds, with €4.5 billion invested at the end of March – €3.9 billion in green bonds.

Takatsuki says the investment manager made the call because green bonds simply aren’t moving the needle on the shift to clean energy fast enough.

Yo-Takatsuki-160x186
Yo Takatsuki, AXA Investment Managers

“The green bond market has been helpful in encouraging those companies that wanted to be green to do so, and those that already were to become even more green,” says Takatsuki. 




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.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

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

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, 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

LOGIN NOW

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