ESG Bond Issuance Slumped in 2022 as Greenwashing Headaches Persist
Is the boom over for global environmental, social, and governance (ESG) bonds?
In 2022, businesses and governments worldwide raised $863 billion in ESG bonds, down 19 percent from the previous year’s haul of $1.1 trillion, according to data compiled by Bloomberg. This is the first time sustainable bonds have declined since they were introduced in the financial markets 15 years ago.
Within the ESG bond market, sales slumped across the board. The data revealed an 11 percent decrease in green bonds, a 22 percent slide in sustainability bonds, a 34 percent decline in social bonds, and a 0.2 percent dip in ESG municipals.
Green loans plunged nearly 31 percent, while sustainability-linked loans were flat….