Green, social, and sustainability bonds in the Asia-Pacific market jointly reached USD 187 billion in 2019 and are expected to grow further. For sustainability-conscious international investors, there are two key challenges: the misalignment of expectation and standard-setting, and the expectation gap between the issuers’ use of proceeds and the quantifiable sustainability benefits achieved.
In this research paper jointly presented by CCA and Solactive AG, we provide a historical overview of the green, social, and sustainable bond market in the Asia-Pacific region, as well as the challenges faced by sustainability-conscious international investors and solutions that may be helpful in navigating those challenges.