Greenwashing & ESG Bond Market Update 2021

What is Greenwashing?

Greenwashing has been defined as the process of conveying a false impression or providing misleading information about how a company’s products are more environmentally sound. Such misrepresentation may characterise the behaviour of all market participants, be they issuers, intermediaries or investors. 

Country updates on ESG

The UK government is planning to issue at least £15 billion of green bonds this year through the issuance of green bonds.  It is well known that there had been some reluctance to consider such an issue, with two key objections being aversion to hypothecation, and the absence of a clear funding benefit that would justify the additional work. Sterling is sadly under-represented in the sustainable capital markets. With the government responsible for issuing half of all sterling debt securities, it is in a unique position to kickstart the market. The US is the world's second biggest greenhouse gas emitter. A change in sentiment in the real and financial economies could be a game changer for the race to net zero.