Green bonds and non-financial value
Human-caused climate change in form of rising temperatures and sea-level rise are already being seen in many places. To avoid permanent effects on society the goal is to limit global temperature rise at two degrees Celsius above pre-industrial levels. In order to stop the increasing temperature rise...
| Autor principal: | |
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| Formato: | Second cycle, A2E |
| Lenguaje: | sueco Inglés |
| Publicado: |
2018
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| Acceso en línea: | https://stud.epsilon.slu.se/13911/ |
| _version_ | 1855572322023374848 |
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| author | Lindberg, Jacob |
| author_browse | Lindberg, Jacob |
| author_facet | Lindberg, Jacob |
| author_sort | Lindberg, Jacob |
| collection | Epsilon Archive for Student Projects |
| description | Human-caused climate change in form of rising temperatures and sea-level rise are already being seen in many places. To avoid permanent effects on society the goal is to limit global temperature rise at two degrees Celsius above pre-industrial levels. In order to stop the increasing temperature rise, the financial sector has to allocate their funds into investments in renewable energy and sustainable projects that decrease direct impact on the climate. To solve for this, new instruments have been developed. One of these is the green bond.
This study aims to investigate why investors are interested in green bonds and which green bonds they prefer. The values that can be obtained from green bonds is also studied, and what consequences the green bond investment give in relation to the investor´s sustainability strategy / profile.
The empirical information is gathered through interviews with investors that currently hold green bonds in their portfolios and a green bond issuer. The empirical data is analyzed together with a theoretical background on CSR, CSV and Portfolio theory.
The results of the study show that the main benefits from investing in green bonds are the high level of information that increases transparency. The transparency generates a better dialog between issuers and investors. Internal dialog regarding sustainability in the investing company is also increased due to the investment in green bonds. Another benefit is lower long-term risk due to compliance with possible regulations. The high level of information also let the investors know where their money goes and how they contribute to a more sustainable world.
The conclusion of this study is that green bonds give equivalent return as conventional bonds while the information and transparency is higher. The values obtained from green bonds are better transparency, increased brand reputation and a higher demand for the investors’ products. Also, being proactive when it comes to possible regulations is a risk-minimizing factor. |
| format | Second cycle, A2E |
| id | RepoSLU13911 |
| institution | Swedish University of Agricultural Sciences |
| language | Swedish Inglés |
| publishDate | 2018 |
| publishDateSort | 2018 |
| record_format | eprints |
| spelling | RepoSLU139112019-02-25T13:23:51Z https://stud.epsilon.slu.se/13911/ Green bonds and non-financial value Lindberg, Jacob Economics and management Human-caused climate change in form of rising temperatures and sea-level rise are already being seen in many places. To avoid permanent effects on society the goal is to limit global temperature rise at two degrees Celsius above pre-industrial levels. In order to stop the increasing temperature rise, the financial sector has to allocate their funds into investments in renewable energy and sustainable projects that decrease direct impact on the climate. To solve for this, new instruments have been developed. One of these is the green bond. This study aims to investigate why investors are interested in green bonds and which green bonds they prefer. The values that can be obtained from green bonds is also studied, and what consequences the green bond investment give in relation to the investor´s sustainability strategy / profile. The empirical information is gathered through interviews with investors that currently hold green bonds in their portfolios and a green bond issuer. The empirical data is analyzed together with a theoretical background on CSR, CSV and Portfolio theory. The results of the study show that the main benefits from investing in green bonds are the high level of information that increases transparency. The transparency generates a better dialog between issuers and investors. Internal dialog regarding sustainability in the investing company is also increased due to the investment in green bonds. Another benefit is lower long-term risk due to compliance with possible regulations. The high level of information also let the investors know where their money goes and how they contribute to a more sustainable world. The conclusion of this study is that green bonds give equivalent return as conventional bonds while the information and transparency is higher. The values obtained from green bonds are better transparency, increased brand reputation and a higher demand for the investors’ products. Also, being proactive when it comes to possible regulations is a risk-minimizing factor. Klimatförändringar orsakat av människor i form av stigande temperaturer och förhöjda havsnivåer syns redan på många håll. För att undvika permanenta effekter på samhället är målet att begränsa den globala temperaturhöjningen till två grader Celsius över den förindustriella nivån. För att stoppa temperaturhöjningen måste den finansiella sektorn allokera medel till investeringar i förnyelsebar energi och hållbara projekt. Detta för att sänka den direkta påverkan på klimatet. För att lösa detta har nya finansiella instrument utvecklats. Ett av dessa är gröna obligationer. Den här studien syftar till att undersöka varför investerare dras till gröna obligationer och vilka gröna obligationer de föredrar. Även de värden som kan erhållas genom att investera i gröna obligationer undersöks. Vidare undersöks vilka konsekvenser investeringarna i gröna obligationer har i relation till investerarnas hållbarhetsprofil/-strategi. Den empiriska informationen samlas in genom intervjuer med en emittent av gröna obligationer samt investerare som för tillfället har gröna obligationer i deras portföljer. Resultatet från intervjuerna analyseras tillsammans med den teoretiska bakgrunden över CSR, CSV och portföljteori. Resultaten visar att de huvudsakliga fördelarna med investeringar i gröna obligationer är en hög grad av information som i sin tur ökar transparensen. Transparensen leder till en bättre dialog emellan investerare och emittent. Den interna dialogen vad gäller hållbarhet i det investerande företaget ökar också till följd av investeringarna i gröna obligationer. En annan fördel är lägre risk på lång sikt till följd av regel-efterlevnad vid potentiella regleringar. Den höga graden av information gör också att investeraren vet var deras pengar går och hur de bidrar till en mer hållbar värld. Slutsatsen av studien är att gröna obligationer ger likvärdig avkastning som konventionella obligationer medan informationsflödet och transparensen är högre. De värden som erhålls genom gröna obligationer är bättre transparens, starkare varumärke och högre efterfrågan av investerarens produkter. Och att vara proaktiv när det kommer till eventuella regleringar är en riskminimerande faktor. 2018-11-01 Second cycle, A2E NonPeerReviewed application/pdf sv https://stud.epsilon.slu.se/13911/7/Lindberg_J_181101.pdf Lindberg, Jacob, 2018. Green bonds and non-financial value : a study of the Swedish green bond market. Second cycle, A2E. Uppsala: (NL, NJ) > Dept. of Economics <https://stud.epsilon.slu.se/view/divisions/OID-510.html> urn:nbn:se:slu:epsilon-s-9922 eng |
| spellingShingle | Economics and management Lindberg, Jacob Green bonds and non-financial value |
| title | Green bonds and non-financial value |
| title_full | Green bonds and non-financial value |
| title_fullStr | Green bonds and non-financial value |
| title_full_unstemmed | Green bonds and non-financial value |
| title_short | Green bonds and non-financial value |
| title_sort | green bonds and non-financial value |
| topic | Economics and management |
| url | https://stud.epsilon.slu.se/13911/ https://stud.epsilon.slu.se/13911/ |