Long before ESG caught the attention of corporate boardrooms, Wall Street, and the investing public, socially responsible investing thrived in the form of tax credit investments, often in the form of incentives implemented by the federal and state governments to encourage the development of real estate projects beneficial to a specific community. Jones Day’s Jeff Gaulin, Patrick Cronin, Doug Banghart, and John Kelley explain how these programs work and the potential impact on the areas they are designed to help, as well as how they have expanded and can help investors of all kinds meet their ESG objectives. For more information on other ESG topics that may be relevant for your organization, please see our ESG insights page.
Category Archives: ESG
Takeaways from this discussion:
- Green bond issues are surging worldwide, eclipsing US$257 billion in 2019.
- Major corporates, including many not usually associated with climate initiatives, are bringing green bonds to market, spanning the investment grade and high-yield spectrum and including more exotic instruments as convertibles and covered bonds.
- Green bond qualifying standards in Europe differ from those in the United States. An EU Green Bond Standard may be adopted as early as Q4 2020.
- First-time issuers should plan time to calibrate their green bond framework and prepare for reporting requirements, enhanced investor outreach, and potential for liability.
- “Greenwashing” remains a concern.