The issuance of self-labeled green bonds continues at a steady pace, with the total issuance in the first quarter of 2016 exceeding $16.5 billion. This compares to an average quarterly rate of issue in 2014 of roughly $9.1 billion and in 2015 of almost $10.5 billion, according to data from the Climate Bonds Initiative. SNW Asset Management continues to find attractive opportunities in the green bond space, and we have participated in additional new issues since the beginning of this year for our Impact Strategy portfolios, including a green bond issue by Apple, Inc.
As an extension of our interest and participation in this market, SNW is now a member of the Green Bonds Principles. The Green Bond Principles are “voluntary process guidelines that recommend transparency and disclosure, and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond.” As participants in the continuing discussion on standards related to green bonds, SNW will be actively working toward a more concrete definition of qualifying projects and for more transparency regarding both the use of proceeds and the resulting environmental impact of the financed projects. Additionally, we are participating in a broader industry dialogue regarding the evaluation and classification of green bonds (both self-labeled and unlabeled) sponsored by a partnership between a leading credit rating agency and a climate data provider.
Source: Climate Bonds Initiative