Transition label could be applied to equity

By Jasper Cox
29 Oct 2020

A Climate Bonds Initiative and Credit Suisse document on ‘financing credible transitions’ may help to create a market standard for judging when a company is moving to a net-zero carbon future. One of its creators said that, in theory, firms could raise dedicated transition equity as well as debt.

The initiative comes as some high-carbon issuers look to tap into investor demand for securities with sustainability labels, while investors find that the sustainability themed market is disproportionately dominated by certain types of issuer.

The paper was published last month, and it remains to be seen whether the framework ...

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