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.
Issuers facing problems sourcing green, social or sustainable assets or aligning them with short term debt issuance could instead turn to ESG-linked commercial paper as an efficient alternative, according to ABN AMRO’s Dick Ligthart. Meanwhile, one issuer who follows the use-of-proceeds approach acknowledges that in the money market sustainable investors might prefer a more holistic ESG rating-based approach, which relies more on the overall ESG credentials of the company given […]