Page 26 - Economy_Sustainable Global Economy

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According to their assessment, here is a summary of Pros and Cons of investing in Green Bonds.

Positives

• Gives investors opportunity to make profits while supporting positive environmental, social, and
governance causes (ESG) at the same time
• Can provide financing options to projects which would otherwise not have any, especially in developing
countries
• Ability to source funds from a large international market
• Will grow substantially in the next few years
• Bonds often provide tax incentives or tax credits
• Provides opportunity for investor diversification
• Provides reputational benefits to issuers as well as marketing to invested projects
• Frees government balance sheets and can help countries achieve global commitments

Negatives

• Issuances that are small are less attractive to investors as they have relatively higher costs as proportion
of total proceeds.
• Green bonds, to be successful, require efficient coordination across market players in the private and
public sector
• Generally higher costs due to transparency and accreditation expenses
• Relatively new market means there is not currently an international authorising body, though there are
some organisations that do this independently
• Many ethical considerations that have yet to be explored as it is a relatively new market

Example of a code of ethic for Investment Analysts

The Association of Certified International Investment Analysts propose principles of ethical conduct
underlying investment analysts’ activities worldwide with a serie of key pillars relying on ethics and
competences.