The Role of the Global Stock Market in the Transition to the Green Economy in the Context of the Climate Risks

The chapter focuses on the identification of the role of the global stock market in the transition to the green economy in the context of climate changes and risks. Three hypotheses were formulated and confirmed in the research: (1) the influence of the “green” bond global market on the sector of the investment class corporate bond in the developed countries; (2) the influence of the “green” bond global market on the sector of the sovereign debt of the developed countries; (3) the influence of the “green” bond global market on the dynamics of the capitalization of the biggest public companies. The involvement of the stock exchanges in the ESG (Environmental, Social, Governance) transformation processes was measured with qualitative and quantitative tools. To achieve to goals of the research, the authors applied the regression analysis methods and the comparative analysis of the empirical data. It was concluded that “green” bond index change contributed to the dynamics of the global indices of the corporate and sovereign bonds of the countries with developed markets. A close connection of the index S&P Green Bond Index with the S&P 500 was established. It was revealed that, despite the global support of sustainable development and measures to adapt to climate changes, the world’s stock exchanges manifest different levels of involvement in the ESG transformation.