September 2020 – Green, Social and Sustainability Bonds

Energy efficiency-default risk correlation bolsters EEMI

10 September 2020

A building’s energy efficiency has a negative and highly significant correlation with the risk of mortgage default, according to an Energy Efficient Mortgage Initiative (EEMI) study, which it says is the fullest analysis of the subject and a timely finding as the European Commission sets out its post-Covid-19 agenda.

Green/ESG CP: Pioneering steps

The expansion of green, social and sustainable or sustainability-linked formats into short term instruments has the potential to boost overall volumes and impact, and pioneers have already begun testing appetite in the commercial paper market. However, the sector’s intrinsic characteristics raise questions over how to best exploit its potential. In this special Sustainabonds report, sponsored by ABN AMRO, Neil Day explores experience to date and asks what could catalyse growth.