KPMG International has released a new guide, Sustainable Insight: Gearing up for green bonds [PDF 2.8 Mb], aimed at helping private and public sector organizations to overcome challenges commonly experienced when issuing green bonds. Green bonds are an increasingly attractive mechanism for organizations to raise capital to fund projects with an environmental benefit, such as renewable energy, low carbon transport or forestry projects. Eight years ago, green bonds did not exist, but fast forward to 2014 and the value of green bonds stood at more than US$53 billion outstanding.
The topic of green bonds is gaining attention in Canada, as many organizations are beginning to assess whether issuing a green bond is the right course of action and seek to understand the process involved.
Gearing up for Green Bonds addresses five key questions that organizations typically ask, including:
- Should we label our bond 'green'?
- How do we define what makes the bond 'green'?
- What should we report on after issuing the bond?
- What type of external assurance should we seek?
- How can we avoid accusation of 'greenwash'?
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