Helping economies worldwide tackle environmental and social challenges
Mobilising and accelerating private capital flows into sustainable projects can lead to a range of societal benefits and can provide investors with a way to ensure their capital is contributing to a resilient future. The UK is a well-established, leading centre for providing sustainable finance services, with a wealth of experience and connections to draw on. Landmark developments are coming to market with increasing frequency. In 2015, the London Stock Exchange was the world’s first exchange to introduce a dedicated green bond segment, which is home to the first certified green bonds out of China, India, the Middle East and the first sovereign green bonds from Asia Pacific and the Americas.
Alongside green bonds, the response to COVID-19 will drive issuance of social and sustainability bonds, which the London Stock Exchange is prepared to support. In 2019, the London Stock Exchange expanded the green bond segment into a more comprehensive Sustainable Bond Market (SBM) to incorporate sustainable, social and issuer-level segments. The SBM offers issuers a wide range of opportunities for sustainability-related debt instruments, and investors improved access and transparency.
To date, 155 green bonds, 9 social bonds, 7 sustainability bonds and 77 green issuers from 23 countries and regions are being listed on the SBM, which raised £51bn. The UK's strong track record is set to continue. Green bonds are just one example of the direct contribution that investors can make to financing the transition to net zero. However, the sustainable finance landscape is constantly evolving to develop further tools, products, and thinking needed to build an environmentally and socially resilient future. As the world gears up to finance this transition, London is well-positioned at the forefront.