Corporate ‘greenium’ reveals effect of ESG rules on returns
Analysis of sustainable products shows how SFDR has caused a shift in investor behaviour, writes economist
Regulators worldwide are training their sights on sustainability-linked investment products.
Analysis of the performance of these products in Europe over the past five years provides some fresh insights into how transparency and disclosure rules can affect the risk/return dynamics for fixed-income investors.
Sustainability-linked bonds and loans pay a higher return to investors if the issuer misses specified environmental, social and governance (ESG) targets. However, this potential extra return
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