Green Bonds - Advanced

• Have an understanding of the role financial institutions can play in the transition to a low-carbon society via their products, especially green bonds
• To have an understanding of the key concepts related to environmental issues that underpin the use of proceeds of green bonds
• To identify sectors that can benefit from opportunities relating to issuing green bonds
• Become familiar with the key ESG principles related to issuing green bonds
• Understand regulation impacting issuance of green bonds today, and how it may impact investors’ expectations on green bonds in the future
• Become able to hold a basic level discussion about the key ESG characteristics of a potential green bond issuance with a corporate

Issuer perspective

Activities and KPIs suited best suited for green bonds

• Key positive environmental impacts in the context of
  • Climate change
  • Natural resources
  • Pollution and waste
  • Circular Economy
• Identifying key sectors and economic activities that contribute to positive environmental impact
  • Energy
  • Materials
  • Industrials
  • Utilities
  • Healthcare
  • Financials
  • Consumer
• Key positive social impacts in the context of
  • Basic needs
  • Wellbeing
  • Education/Work
• Relevant KPIs for sustainability-linked bonds
  • Key environmental KPIs
  • Key social KPIs

• Classification of green-ness
• Taxonomies
  • EU Taxonomy
• Certifications for green-ness
  • Cicero
  • Climate Bond Initiative
  • Moody's Green Bond Assessments

• Green Bond Principles
• Principles
  • Use of Proceeds
  • Case study: pre-issuance disclosure of use of proceeds
  • Process of Project Evaluation and Selection
  • Management of Proceeds
  • Reporting
  • Case study: post-issuance reporting of green bond
• Recommendation
  • Green Bond Frameworks
  • External Reviews
• Other principles
  • Social Bond Principles
  • Sustainability Bond Principles
  • Sustainability-linked Bond Principles

Investor Perspective

Context: How investors support the low-carbon transition

• Integrating low-carbon themes
  • Impact
  • Thematic
  • Best-in-class
  • Positive Tilt
  • Exclusions
• Divestment
• Active ownership Defining low carbon

Allocation of Green Bond

• Green bond universe
  • Key characteristics
  • How it compares to vanilla bond universe
• Allocation of green bond
  • Fixed income fund: Corporates
  • Fixed income fund: Financials
  • Green Bond fund: market
  • Case study: largest green bond funds
  • Case study: green bond index
  • Multi-asset class fund
  • Case study: thematic multi-asset class fund

Greenwashing and external reviews

• Definition and types of greenwashing
  • Hidden trade-offs
  • ‘Lesser of two evils’
• Gray areas
  • Case study: Transition bond of agricultural company
  • Case study: Sustainability bond by aviation company
• External reviews
  • Assurance
  • SPO
  • Green bond rating
  • Pre-issuance verification
  • Post-issuance assurance
  • Impact report
  • Post-issuance verification

Regulation/Certifications and Investor Expectations

• EU Taxonomy
  • Economic activities
  • Additional due diligence
• EU Climate Benchmark
  • Climate Transition
  • Paris-Aligned
• EU fund-level certifications
  • LuxFlag Climate Finance
  • LuxFlag Environment
  • Greenfin Label
  • Nordic Swan Ecolabel
• Sustainable Finance Disclosure Regulation
• Investor expectations
• Case study: Minimum standards of leading asset manager
• Investor Reporting

The trainer is a former banking sector analyst specializing in emerging markets, especially Africa. With experience in trade and commodity finance, syndicated loans, fintech and agritech, he brings a wide range of experience in some of the most dynamic areas of banking.

An economist by training, he was previously Senior Economist at the Economist Intelligence Unit and head of research at pan-African bank, Ecobank. He has worked with international banks, multilateral financing institutions, hedge funds, and investment funds across the globe, and with multinational corporations.

He has researched and written about ESG, particularly the intersection of ESG and fintech. He holds a BA and a PhD from the University of Bristol.

Green bonds and other types of sustainability-related bonds, which finance projects with environmental and social benefits have passed the $1trillion dollar milestone for the amount issued since the first-ever green bond in 2007. Green bonds are an important financial innovation as they are particularly suited for providing the much-needed capital for environmental and social projects and infrastructure required to build a low-carbon economy.

Fast growth in this market sector is resulting in unprecedented opportunities. On one hand, green bonds address the investment needs of investors, making them appropriate investment vehicles to tap into their capital holdings. On the other side, green bonds allow issuers to raise funding for projects that support the sustainable development agenda.

This course delivers the advanced understanding that those working for and with corporates need to identify green activities to be funded by green bonds, as well as other ESG characteristics that are requirements or expectations regarding green bonds. It also addresses how investors are thinking about green bonds in terms of their wider ESG strategy, how they are allocating to green bonds within their investments, and how regulation is impacting their expectations today and in the future.