Further cementing its place as a true thought leader in the ongoing global energy transition, Pillsbury has published a new research report, written by The Economist Intelligence Unit (EIU), entitled, “Financing a More Sustainable Future: How policymakers and the financial services industry can help the sustainable finance market to scale.”

The 30-page report serves to illuminate the much-buzzed-about but often misunderstood topic of sustainable finance, which has proven an attractive avenue of investment for environment-and climate-conscious corporations and financial institutions. Prepared by a team of EIU researchers, writers and editors, the publication provides an extensive examination of the ongoing transition to a low-carbon future and sustainable finance’s role in it, with first-hand input from well-known subject matter experts including Amy Domini (Founder and Chair, Domini Impact Investments), Mindy Lubber (CEO and President, Ceres), Nathan Fabian (Chief Responsible Investment Officer, UN Principles for Responsible Investment), Neil Brown (Senior Fellow at the Atlantic Council Global Energy Center) and Sean Kidney (Co-founder and CEO, Climate Bond Initiative). It also includes direct insights from Pillsbury on topics such as sustainability-linked debt products and environmental, social & governance (ESG) best practices in the boardroom.

Partner Sheila Harvey, who co-leads the firm’s Sustainable Finance practice, stated: “Importantly, it is not just businesses and investors who have established sustainable finance as important to the success of the global economy. World governments are increasingly turning their attention to regulating and incentivizing more environmentally responsible decision-making and disclosures from the private sector, and Pillsbury is well-positioned to help companies navigate these complexities as they develop.”

Key findings from the report include:

  • Global green bond issuances reached $269.5 billion last year and are predicted to hit $400-$450 billion in 2021.
  • Sustainability bonds also saw strong growth in 2020, with issuance 81% higher than the previous year, at $68.7 billion.
  • While the green bond market remains just 3.5% of the broader bond market, signs of growth are encouraging by traditional liquidity measurements of market growth, new issuance activity, dealer inventories and bid/offer spreads.
  • The number of companies that publish sustainability reports has increased significantly—90% of S&P 500 companies did so in 2019, up from 20% in 2011, and 65% of the companies in the Russell 1000 did so in 2019, up from 60% in 2018.

To read the full report, click here.

Pillsbury’s Sustainable Finance and ESG practices are devoted to helping clients around the world find sustainable, cost-effective solutions as they contemplate lending, business and investment decisions. A multidisciplinary team of firm attorneys works seamlessly across practices and time zones to leverage their extensive knowledge of renewable energy, private equity, trade, regulatory, litigation, environmental, tax, investment funds, capital markets and intellectual property law and provide clients with comprehensive guidance on the full spectrum of sustainable finance matters.