Henley academics collaborate with Climate Bonds Initiative on first Green Bond Investor Survey

A new report looking at how climate change could be addressed through investment decisions features statistical analysis by academics from Henley Business School.

Dr Ivan Sangiorgi and Dr Lisa Schopohl supported the Climate Bond Initiative (CBI) with its Green Bond European Investor Survey, published earlier this month.

The aim of the survey was to gain a comprehensive understanding of how the fixed-income investment community is addressing or intending to address climate change through investment decisions, and to identify measures that could help grow the green bond market from an investor’s perspective.

Green bond proceeds are used to fund new and existing projects with environmental benefits.

To do this, the CBI spoke to 48 Europe-based fixed income asset managers, asking them how they perceived the green bond market and exploring the drivers, challenges and required tools and incentives which could encourage investors to buy green bonds and support market growth.

Key findings showed there is strong investor appetite for green bonds, but supply does not currently meet demand, especially for corporate bonds in high-emitting sectors and sovereign issuances with high climate impact – for example, mitigation of pollution levels, investments with high green credentials and transparency.

Dr Lisa Schopohl, Lecturer in Finance at Henley Business School, said:

“One of the main objectives of the survey was to identify tools and mechanisms to scale the green bond market. A key finding is that investors view policy, including tax incentives and differentiated capital treatment of low- versus high-carbon assets, as one of the most effective ways to drive green bond investments.”

Dr Ivan Sangiorgi, Lecturer in Finance at Henley Business School, said:

“The survey was a great opportunity to collaborate with the CBI, a leader in the green bond space, and to contribute with our research expertise to the analysis of the survey. We hope that the recommendations of the survey will help to encourage the issuance of green bonds and inform policy making in the transition from a high- to low-carbon environment.”

The Climate Bonds Initiative is an investor-focused not-for-profit organisation, promoting large-scale investment in the low-carbon economy.

The full report can be viewed here.