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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

    • Issuance of sustainable bonds has increased rapidly, but investors in Asia must not assume that a bond or its issuer is "green" just because of the label.
    • Issuance of sustainable bonds has increased rapidly, but investors in Asia must not assume that a bond or its issuer is "green" just because of the label. PHOTO: PIXABAY
    Published Mon, May 29, 2023 · 03:53 PM

    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.

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