By Aidan Gregory, Sam Kerr
17 Dec 2020
Having lagged behind bonds in embracing the green agenda, the primary equity capital market came into its own in 2020. With investors more engaged in sustainability and fighting climate change, there are hopes that 2021 will be even greener. Sam Kerr and Aidan Gregory report.
Every explanation of what environmental, social and governance investing is starts by stating that it began in equity markets and has spread to bonds and other asset classes. Paradoxically, however, when it comes to new capital raising, the bond market has led the way.
While debt capital markets have been obsessed with green bonds and more recent offshoots like sustainability-linked notes for at least seven years, the equity capital market has largely ignored the subject.