Companies face growing pressure to set science-based climate targets
Europe’s largest asset manager Amundi has announced that it will push companies to adopt science-based targets verified by the Science Based Targets initiative (SBTi). The move highlights growing pressure from investors for companies to release specific emission-reduction targets aligned with the Paris Agreement. What are science-based targets, and how can companies adopt them?
Do green bonds perform better than non-green ones? Andreas Zsiga, chief analyst in Nordea Credit Research, recently examined that question. He discusses his findings and the outlook for green premiums going forward.
Financial stakeholders are key to shipping’s green transition
Andrew Stephens, Executive Director of the Sustainable Shipping Initiative, kicked off Nordea's online Sustainable Finance and Shipping Forum on 20 January. He shares his thoughts on the transformational impact of ESG and sustainable finance on the shipping industry.
The sustainable loan market: A snapshot of recent developments
Since the publication of the Sustainability-Linked Loan Principles in 2019, global sustainability-linked loan volumes have shot past green loan levels. Sustainability-linked loans provide a good complement to green loans for companies pushing a broader sustainability strategy and are a relevant alternative for entities within sectors that are not green by nature.
Investments that reduce food loss and waste can deliver two big wins: improving food security and reducing greenhouse gas emissions, according to the World Bank, which recently issued two bonds to raise awareness of the issue.
Lessons from the infant sustainability-linked bond market
In September 2020, the first bonds aligned to the Sustainability-Linked Bond Principles (SLBPs) were issued. Even though the fledgling market provides endless opportunities for structuring sustainability-linked bonds (SLBs), a comparison of the current issuers and their bonds reveals unexpected similarities.
Nordea launches its own ESG ratings for Nordic companies
The ratings system caters to a variety of investment strategies, allowing investors to tailor the output for their specific preferences. Marco Kisic, Nordea’s Head of ESG Research, explains the ins and outs.
Ever since Poland became the first sovereign to issue a green bond back in December 2016, the race has been on to see which countries would follow. Now the market looks set to grow rapidly, with Sweden recently publishing its Green Bond Framework, Germany planning to issue its inaugural green bond in September and Denmark exploring an innovative new model for sovereign green bonds.
COVID-19 bonds – a market and investor perspective
The current corona crisis has given rise to a new label of sustainable bonds: COVID-19 bonds. With no established market practices for these bonds, issuers and investors are working together to find existing and new solutions for COVID-19-related funding, while safeguarding the integrity of the sustainable finance market.
Do green bonds outperform in ‘risk-off’ periods? Yes, but beware the nuances
We find that green bonds have been more resilient than traditional bonds in times of crisis, but there are things to keep in mind when doing the analysis.
Corona bonds: What are they and why do they matter?
The COVID-19 pandemic has spawned a new bond label, so-called "corona bonds," opening opportunities not only for sovereign and supranational issuers, but also for corporates.