Green Bond ratings measure effectiveness, not just risk
It’s harder today for the green to fade.
Who else is taking steps toward realistic measurements of the need for and the effectiveness of climate-proofing actions?
Moody’s new Green Bond Assessments, while not strictly ratings, help investors determine if green bond proceeds are actually being used to achieve “positive environmental outcomes.”
Up until this year, green bonds were rated based only on creditworthiness. But buyers want to be sure they’re actually being used to improve the environment. Will they reduce a carbon footprint, improve water quality, protect against flooding, whatever?
