Companies that make green bonds better in processing emissions, the study shows

Written by Mark Jones

LONDON (Reuters) – Green bond companies have shown better in reducing greenhouse gas emissions, especially in the sectors of severe pollutants, a new analysis from the bank for international settlements.

The study published on Tuesday evaluated the impact of the 3 trillion dollar bonds market, as companies collect capital for projects that limit climate change or benefit the environment in another way.

It found that from a total point of view, emissions of green bond exporters decreased by more than 10 % in the four years that followed their release and that emissions for each unit of the company’s revenue – a measure of emissions density – showed a 30 % more clear decrease.

“The results showed that the issuance of green bonds is related to a significant decrease in the emissions of companies subsequent greenhouse gases for companies,” the study said.

Although the study approved the concerns raised about the “greenery” of companies, it said that a six -fold boom in the size of the green bond market since 2018, and the number of increasing governments now issued by enhancing transparency was now.

Companies tend to issue only small amounts of green links for their size. This means that they are usually not the main driver of emissions discounts. But they are often a good “signal” for the company’s travel.

The intensity of “range 1”, such as fuel used in the company’s fleet of vehicles or burned in its ovens, decreased by about 21 % on average after one year of the first green bond.

Similar results were also seen with broader -1 to 3 range emissions, which also include lower emissions in the company’s control as in its supply chain. The intensity of emissions remained much lower for direct emissions even after three years.

The study used the S&P Trucost data that can explain about two -thirds of the global greenhouse gas emissions.

These emissions show great geographical contrast but are often concentrated in a few countries with intense manufacturing sectors in the field of manufacturing and intense energy intensity, such as China, the United States, Japan and India.

The search results highlight how “heavy gates” reduce their emissions after the issuance of green bonds.

“Given the deviation of carbon emissions, this is very important in terms of societal goals” zero zero “.

(Mark Jones reports, edited by Ed Osmond)