Green Communities

WHAT ARE GREEN SECURITIES?

Greensecurities.com are evolving climate finance instruments, stocks(equity) and bonds(Debt) issued by companies that are committed to the principals of environmental sustainability to minimize their negative impact on the planet. As the world transitions from “brown” to “green” trillions of dollars will be invested. It is estimated 12 trillion dollars will be required.

GREEN BONDS OR CLIMATE BONDS?

A Green bond is a fixed income financial instrument (debt) designed to support climate related or environmental projects. The green bond is also referred(AKA)to as a climate bond. The green bond use’s green underwriting principals from the International Capital Market Association(ICMA). The climate bond uses green underwriting guidelines from the climate bond standard.

WHAT ARE ESG BONDS?

Environmental, social, governance fixed income financial instrument(ESGbonds.com). ESG bonds include: social bonds, green bonds, and sustainable development bonds(SDB). ESG bonds incorporate emerging developmental ESGunderwriting.com guidelines from the Davis world economic forum.

WHAT ARE TRANSITION BONDS?

Green bonds are for green industries. However when a “brown” industry( Oil, mining, chemicals, shipping, plastics) needs to raise capital they cannot use a green bond(Greenwashing). A brown company is moving from “brown” towards “green” compliance. Usually over a period of multiple years. The financial tool designed and targeted for brown issuers will be transition bonds.

WHAT ARE KPI BONDS?

Sustainability linked bonds,(SLB) aka, KPI bonds are forward looking performance based debt instruments with predetermined internal or external key performance indicators(KPI). Designed for issuers that do not have an advanced ESG profile, Key performance indicators are preselected and relevant to to issuer.