Sustainability-linked bonds – their potential to promote issuers’ transition to net-zero emissions and future research directions

References

• Amundi. 2021. “Amundi’s Shareholder Engagement Priorities in 2021.” https://about.amundi.com/index.php/layout/set/popin/Sites/Amundi-Corporate/Pages/News/2021/Voting-policy-and-2021-engagement.
   Google Scholar
• Caldecott, Ben. 2020. “Achieving Alignment in Finance.” EIT Climate-KIC, Aligning Finance for The Net Zero Economy, 1: 12–39. 200902_J932-CKIC-UNEP-ThoughtLeadershipSeries-DrBenCaldecott-1.pdf (climate-kic.org).
   Google Scholar
• CDP. 2021. “Financiers with $29 Trillion Ask 1600 Companies for Science-Based Targets Ahead of COP26.” https://www.cdp.net/en/articles/investor/financiers-with-29-trillion-ask 1600-companies-for-science-based-targets-ahead-of-cop26.
   Google Scholar
• Dahlmann, Frederik, Layla Branicki, and Stephen Brammer. 2019. “Managing Carbon Aspirations: The Influence of Corporate Climate Change Targets on Environmental Performance.” Journal of Business Ethics 158 (1): 1–24. doi:10.1007/s10551-017-3731-z.
   Web of Science ®Google Scholar
• Dietz, Simon, Charles Fruitiere, Carlota Garcia-Manas, William Irwin, Bruno Rauis, and Rory Sullivan. 2018. “An Assessment of Climate Action by High-Carbon Global Corporations.” Nature Climate Change 8 (12): 1072–1075. doi:10.1038/s41558-018-0343-2.
   Web of Science ®Google Scholar
• Elwin, Peter, Nick Robins, John Willis, and Giorgio Cozzolino. 2021. Brazil: Roadmap to a Sustainable Future - Nature-Based Challenges, Opportunities and Solutions. London: Planet Tracker and Grantham Research Institute on Climate Change and the Environment.
   Google Scholar
• Enel Group. 2020. “Sustainability Linked Bond - Investor Presentation (October 2020).” https://www.enel.com/content/dam/enel-com/documenti/investitori/investire-in-enel/programmi-principali/sdg-bond/investor-presentation_october2020.pdf.
   Google Scholar
• Erlandsson, Ulf. 2020. “How Green Bonds are (Not) Supposed to Work. The Case of State Bank of India and Potential Carmichael Lending.” Anthropocene Fixed Income Institute. https://img1.wsimg.com/blobby/go/946d6aac-e6cc-430a-8898-520cf90f5d3e/AFII_GreenBonds_and_coal.pdf.
   Google Scholar
• European Commission. 2021. “Commission Delegated Regulation 2800.” https://eur-lex.europa.eu/resource.html?uri=cellar:d84ec73c-c773-11eb-a925-01aa75ed71a1.0021.02/DOC_1&format=PDF.
   Google Scholar
• Flitman, Anna. 2021. “ESG Sustainability Linked Bonds Offer Pricing Perk for Right High Yield Credits.” https://www.spglobal.com/marketintelligence/en/news-insights/blog/esg-sustainability-linked-bonds-offer-pricing-perk-for-right-high-yield-credits.
   Google Scholar
• Gianfrate, Gianfranco, and Mattia Peri. 2019. “The Green Advantage: Exploring the Convenience of Issuing Green Bonds.” Journal of Cleaner Production 219: 127–135. doi:10.1016/j.jclepro.2019.02.022.
   Web of Science ®Google Scholar
• Giráldez, Juan, and Stephanie Fontana. 2021. “Sustainability-Linked Bonds: The Next Frontier in Sovereign Financing.” doi:10.2139/ssrn.3829946. https://ssrn.com/abstract=3829946.
   Google Scholar
• ICMA. 2019. “Green, Social and Sustainability Bonds.” International Capital Market Association. https://www.icmagroup.org/green-social-and-sustainability-bonds/.
   Google Scholar
• ICMA. 2020a. “Sustainability-Linked Bond Principles.” International Capital Market Association. https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/June-2020/Sustainability-Linked-Bond-Principles-June-2020-171120.pdf.
   Google Scholar
• ICMA. 2020b. “Climate Transition Finance Handbook.” https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Climate-Transition-Finance-Handbook-December-2020-091220.pdf.
   Google Scholar
• ICMA. 2021. “Sustainability-Linked Bond Principles. Related Questions.” Sustainability-Linked-Bond-Principles-Related-questions-February-2021-170221v3.pdf.
   Google Scholar
• Ioannou, Ioannis, Shelley Xin Li, and George Serafeim. 2016. “The Effect of Target Difficulty on Target Completion: The Case of Reducing Carbon Emissions.” The Accounting Review 91 (5): 1467–1492. doi:10.2308/accr-51307.
   Web of Science ®Google Scholar
• Jensen, Øistein H., and Gustav Sannem. 2021. “The First Sustainability Linked Bond in Shipping.” The Gree Bond, February 2021, 18–21, Skandinaviska Enskilda Banken, SEB. https://sebgroup.com/siteassets/large_corporates_and_institutions/our_services/markets/fixed_income/green_bonds/the-green-bond-04022021_final.pdf.
   Google Scholar
• Kölbel, Julian, Florian Heeb, Falko Paetzold, and Timo Busch. 2020. “Can Sustainable Investing Save the World? Reviewing the Mechanisms of Investor Impact.” Organization & Environment 33 (4): 554–574. Doi:10.1177/1086026620919202.
   Web of Science ®Google Scholar
• Liberatore, Stephen M. 2021. “Sustainability-Linked Bonds Do Not Fit Our Impact Framework.” Nuveen. https://www.nuveen.com/en-us/insights/income-oriented-investing/sustainability-linked-bonds-do-not-fit-our-impact-framework.
   Google Scholar
• Maltais, Aaron, and Björn Nykvist. 2020. “Understanding the Role of Green Bonds in Advancing Sustainability.” Journal of Sustainable Finance & Investment, 1–20. doi:10.1080/20430795.2020.1724864.
   Web of Science ®Google Scholar
• Maltais, Aaron, Gregor Vulturius, and Heidi Tuhkanen. 2020. “Response to Consultation on ‘Sustainable Finance – EU Classification System for Green Investments’ Related to Regulation (EU) 2020/852.” Stockholm Environment Institute. https://cdn.sei.org/wp-content/uploads/2021/01/consultation-response-sei-sustainable-finance-eu-classification-system-for-green-investements.pdf.
   Google Scholar
• Natixis. 2021. “Sustainability-Linked Bonds – Investors Views.”. https://gsh.cib.natixis.com/api_website_feature/files/download/11818/SLB-Survey-Short-Results_2021-03-FinalVersion_LAST.pdf.
   Google Scholar
• NN Investment Partners. 2021. “Sustainability-linked Bonds: A Viable Alternative for Green Bonds?” https://www.nnip.com/en-INT/professional/insights/articles/sustainability-linked-bonds-a-viable-alternative-for-green-bonds.
   Google Scholar
• Ramel, Ebba, and Jacob Michaelsen. 2020. “Lessons from the Infant Sustainability-Linked Bond Market.” Nordea. https://insights.nordea.com/en/sustainability/sustainability-linked-bonds/.
   Google Scholar
• Rust, Susanna. 2020. “International Sustainable Finance Forum Starts Taxonomy Work, Gains IMF.” Investment & Pension Europe. https://www.ipe.com/news/international-sustainable-finance-forum-starts-taxonomy-work-gains-imf/10048486.article.
   Google Scholar
• Sakhel, Alice. 2017. “Corporate Climate Risk Management: Are European Companies Prepared?” Journal of Cleaner Production 165: 103–118. doi:10.1016/j.jclepro.2017.07.056.
   Web of Science ®Google Scholar
• Sartzetakis, Eftichios S. 2020. “Green Bonds as an Instrument to Finance Low Carbon Transition.” Economic Change and Restructuring, February. doi:10.1007/s10644-020-09266-9.
   Google Scholar
• SBTi. 2021. “From Ambition to Impact: How Companies are Reducing Emission at Scale with Science-Based Targets.” Science-Based Target initiative. https://sciencebasedtargets.org/resources/files/SBTiProgressReport2020.pdf.
   Google Scholar
• Shishlov, Igor, Romain Morel, and Ian Cochran. 2016. “Beyond Transparency: Unlocking the Full Potential of Green Bonds.” https://www.cbd.int/financial/greenbonds/i4ce-greenbond2016.pdf.
   Google Scholar
• Slimane, Mohamed, Dany Da Fonseca, and Vivek Mahtani. 2020. “Facts and Fantasies about the Green Bond Premium”. Working Paper 102-2020. Amundi. https://research-center.amundi.com/files/nuxeo/820b8966-f5cc-4bbc-a99b-22255033611c.
   Google Scholar
• Sloman, John, Dean Garratt, and Jon Guest. 2018. Economics. London: Pearson Education. ISBN 978-1292187853.
   Google Scholar
• Stewart, Fiona, and Silvia C. Anderson. 2021. “My Word is My Bond: Linking Sovereign Debt with National Sustainability Commitments.” Development and a Changing Climate. World Bank Blogs [online].(worldbank.org).
   Google Scholar
• Tuhkanen, Heidi, and Gregor Vulturius. 2020. “Are Green Bonds Funding the Transition? Investigating the Link Between Companies’ Climate Targets and Green Debt Financing.” Journal of Sustainable Finance & Investment. doi:10.1080/20430795.2020.1857634.
   Web of Science ®Google Scholar
• V.E. 2021. “Second Party Opinion on Enel’s Sustainability-Linked Financing Framework.” https://vigeo-eiris.com/v-e-provides-a-spo-on-enels-2021-sustainability-linked-financing-framework/.
   Google Scholar
• Walenta, Jayme. 2020. “Climate Risk Assessments and Science-Based Targets: A Review of Emerging Private Sector Climate Action Tools.” WIRES Climate Change 11: 2. doi:10.1002/wcc.628.
   Google Scholar
• Wass, Sanne. 2021. “Sustainability-Linked Bonds in ‘Rapid Growth’ as More Firms Tap ESG Debt Market.” https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/sustainability-linked-bonds-in-rapid-growth-as-more-firms-tap-esg-debt-market-65049789.
   Google Scholar
• Wodall, Louie. 2020. “Faulty Climate Targets Imperil More Than Banks’ Sustainability Credentials.” Climate Risk Review. https://www.climateriskreview.com/p/faulty-climate-targets-imperil-more.
   Google Scholar
• Zerbib, Olivier David. 2019. “The Effect of Pro-Environmental Preferences on Bond Prices: Evidence from Green Bonds.” Journal of Banking & Finance 98: 39–60. doi:10.1016/j.jbankfin.2018.10.012.
   Web of Science ®Google Scholar