It is great that global green bonds had another record year in 2019 with US$173.4 issued. The highlights in 2019 were:
- Europe continued to be at forefront of global green bond issuance in 2019, capturing 55% market share
- China took the lead in the global green bonds issuer nation followed by the US and France
- SSA and Financials dominate with 64% combined market share; additional sectors tap the green bond market
- Belt & Road nations raised US$57.4 billion
- Largest Green Bond was issued by Bank of America
- Top Bookrunner: BNP Paribas SA.
The types of issuer have grown considerably as the figure below shows:
Source & Copyright©2020 - Refinitiv
These Green Bonds will help to reduce the CO2 impact slightly, but every reduction helps. What could your corporate treasury department do to reduce your carbon footprint?
First, cut business travel impact
The global value of business flights is forecast to top £1.3tn by 2023 with flying being one of the fastest-growing sources of greenhouse gas emissions. This forecasted increase is not inevitable, corporate treasury departments could rethink their approach to business travel, e.g. do you really need to jet across from the UK to New York to set up a deal or fly from London to Dublin for a meeting?
Companies are now taking their ‘net-zero’ pledges seriously by:
- having a “one person” international travel policy, where only one member of staff is allowed to attend global business meetings
- using virtual meetings wherever possible and practical
- making rail first choice and banning flights under 250 miles
- having pop-ups on their internal booking system which, when a user requests air travel, asks “do you need to travel at all or could you use Skype?”
- extending trips slightly to combine multiple engagements in one trip, rather than have two/three trips
- joining Climate Perks, a new scheme that works with climate-conscious employers to offer at least two paid “journey days” per year to staff who travel on holiday by train, coach or boat instead of flying.
CTMfile take: The climate crisis is accelerating. We all need to take urgent action. There are many other approaches to reducing air-travel. What is your corporate treasury department doing to reduce air-travel?
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