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Sustainable bonds in Asia: Look beyond the label

Bonds are key to helping Asia tackle climate change. But even with a green or sustainable label, bottom-up assessment of issuers is crucial

APPETITE for sustainable assets is growing fast. Institutions and individual investors want to know that their money is being put to productive use.

Regulators are imposing stricter environmental, social and governance (ESG) requirements on companies, driving a unification of standards and guidelines across markets.

This has led to a sharp rise in sustainable investing. Bond markets – the single largest source of financing in global public capital markets – offer a fundamental investment channel.

Green, social, sustainability and sustainability-linked bonds are now front and centre among sustainable fixed-income strategies. As at December 2022, the segment has reached US$3 trillion from just...

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