HBR Insights Future of Business Boxed Set (8 Books)

 

3

THE STATE OF SOCIALLY RESPONSIBLE INVESTING

by Adam Connaker and Saadia Madsbjerg

In 2007, the European Investment Bank issued its first green bond, a EUR 600-million equity index-linked security, whose proceeds were used to fund renewable energy and energy-efficiency projects. A year later, the World Bank followed suit, and by 2017, over $155 billion worth of public and corporate green bonds had been issued, paving the way for the Seychelles government to issue the first ever “blue bond” last year—a $15-million bond to fund marine protection and sustainable fisheries.

The success of these instruments reflects the fact that investors are increasingly conscious of the social and environmental consequences of the decisions that governments ...