How Green are Green Bonds?
Demystifying real estate green bonds decarbonization efficiency
Study Purpose
The Steers Center recently completed a student-led study of Green Bonds issuances in Commercial Real Estate (CRE). The purpose was to assess the effectiveness of these financial instruments in actually reducing carbon emissions. Further, the study evaluates benefits to the issuing parties in terms of potentially (hopefully) lowering the issuer’s cost of capital.
Study Scope
- Complete a global study of sustainability and green bond financing products.
- Assess the carbon neutralization efficiency of Green Bond products.
- Assess the benefits to Green Bond issuers in terms of potentially lowering their cost of capital.
- Assess signaling effects (i.e. “greenwashing”) versus actual execution of carbon neutralization strategies.
- Offer specific conclusions and concrete recommendations to the CRE industry relative to future Green Bond issuances and other sustainability strategies.
Findings
The study’s findings are surprising and revealing. Please access the full report below to gain a complete understanding.
Read the report and view our analysis, findings, and recommendations. Also, please stay tuned for our upcoming panel discussion regarding the study.
Authors
Santiago Mayoral, MBA, Class of 2021 (study lead)
Jack Laurent, B.S. in Business Administration, Class of 2021
Jean-Claude Kradin, B.S. in Business Administration, Class of 2021