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Green Bond Impact Report as an Essential Next Step in Market Development

Author

Listed:
  • Gergely Manasses

    (Magyar Nemzeti Bank)

  • Eva Paulik

    (Magyar Nemzeti Bank)

  • Attila Tapaszti

    (Magyar Nemzeti Bank)

Abstract

The measurement of the environmental impact of green bonds, its reliability and the publication of measurement results are crucial for the transparent functioning of the market and supporting investor decisions. However, this segment of the financial markets is still at an early stage of maturity, and the lack of adequate data and methodologies is a common problem that can only be solved by the development of single-market best practices and regulations. The essay reviews the trends, characteristics and current regulation of existing green bond impact reports and describes the challenges of evaluating impact reports, based on the literature and our own practical experience. In our view, the market has already moved past its "virtue-signalling PR" stage, but there is still a long way to go before impact data become as standardised as traditional financial data.

Suggested Citation

  • Gergely Manasses & Eva Paulik & Attila Tapaszti, 2022. "Green Bond Impact Report as an Essential Next Step in Market Development," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 21(4), pages 180-204.
    • Handle: RePEc:mnb:finrev:v:21:y:2022:i:4:p:180-204
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    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-4-e2-manasses-paulik-tapaszti.pdf
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    References listed on IDEAS

    as
    1. Emambakhsh, Tina & Giuzio, Margherita & Mingarelli, Luca & Salakhova, Dilyara & Spaggiari, Martina, 2022. "Climate-related risks to financial stability," Financial Stability Review, European Central Bank, vol. 1.
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    More about this item

    Keywords

    green bond impact reports; quantification of environmental impacts; impact investing;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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