ESG journey is set to accelerate in credit markets

Wednesday 22 June 2022

Insights Paper

Last year global sustainable debt issuance hit a record of over $1.4tn, with the overall sustainable debt universe expanding to near $3.4tn. In the first quarter of 2022 this healthy trend halted temporarily, as high energy prices and rising borrowing costs weighed on market trends. We believe this setback should prove transitory and that the sustainable debt market remains on track to exceed $4tn by mid-2022, as the RussiaUkraine war should reinforce the trend towards sustainable investing. We believe the current geopolitical tensions could be a catalyst for political will to step up the Net Zero transition, as reducing the dependence on fossil fuels may emerge as a national security priority in support of energy independence in some jurisdictions.

INVESTMENT INSIGHTS BLUE PAPER | JUNE 2022