united statesen
Sustainable Investing Glossary

Green bonds

Green bonds are debt securities for which the proceeds are exclusively used to promote climate and environmentalsustainability purposes.

For a bond to qualify as ‘green’, its proceeds should be used for projects with clear environmental benefits that can be described and quantified or assessed, such as renewable energy or waste management.

In 2014, the Green Bond Principles (GBP) were established with the aim to promote integrity in the green bond market through guidelines that recommend transparency, disclosure and reporting. More specifically, issuers should establish impact objectives and engage environmental reviews of the projects. The proceeds should be moved to a sub-portfolio which is ring-fenced, and an auditor should be appointed to track the flow of funds. Reporting on the use of proceeds along with the qualitative or quantitative indicators of the environmental impact should be done at least annually.

The green bond market took off in 2007 with the issue of the Climate Awareness Bond by the European Investment Bank. According to Bank of America Merrill Lynch, the total outstanding amount of green bonds exceeded USD 200 billion in 2017. Issuers of green bonds now include corporates, supranationals, governments and municipalities.

Making better-informed investment decisions
Making better-informed investment decisions
Sustainable investing
Five years of SDGs, five lessons learned
Five years of SDGs, five lessons learned
The UN’s Sustainable Development Goals (SDGs) celebrate their fifth anniversary this month – so, what have we learned?
25-09-2020 | Insight
Robeco strengthens exclusions policy for fossil fuels
Robeco strengthens exclusions policy for fossil fuels
Robeco is extending its exclusion policy for fossil fuel producers and users to its entire range of strategies to help combat global warming.
24-09-2020 | Insight
SI Opener: Loss of biodiversity is a bigger threat than climate change
SI Opener: Loss of biodiversity is a bigger threat than climate change
Biodiversity represents the knowledge learned by evolving species over millions of years.
24-09-2020 | SI Opener


This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of RIAM US and its participating affiliates, which may include information on strategies not yet available in the US. SEC regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of IUAM, a US SEC registered investment adviser.

By clicking I agree, I confirm that I have read and understood the above.
I Disagree