Credibility

1. Financial reporting - investment - assurance - credit risk - sustainability.

Truthfulness and completeness in information.

2. Investment - credit risk - sustainability.

More generally, reliable and usually highly creditworthy.

Only credible issuers enjoy greenium

"Our findings show that, first, in the absence of regulatory standards, investors seek credibility of green bonds and issuers.

In terms of bond credibility, we find that only bonds with external review trade at both a statistically and economically significant greenium.

Regarding issuers’ credibility, we define firms in the alternative energy sector as credible as well as banks that signed for the United Nations Environment Programme Finance Initiative (UNEP FI).

We find that only green bonds issued by credible companies trade at a statistically and economically significant greenium.

The presence of the greenium is still debated in the literature, and our findings contribute to this debate by providing additional evidence on the presence of the greenium in secondary markets, and, particularly, on the importance of credibility for green bonds."

Pricing of green bonds: drivers and dynamics of the greenium - European Central Bank - Working Paper 2728 - September 2022.

See also

• Assurance
• Audit
• Blue chip
• Certification
• Corporate credit ratings: a quick guide
• Credit enhancement
• Credit rating
• Creditworthy
• Environmental profit and loss (EPL)
• Financial reporting
• Green bond
• Greenium
• International Sustainability Standards Board (ISSB)
• Issuer
• Regulatory standard
• Second Party Opinion (SPO)
• Statistical significance
• Sustainability
• Sustainability-linked bond (SLB)
• Transition plan
• United Nations Environment Programme Finance Initiative (UNEP FI)

External link

• Pricing of green bonds: drivers and dynamics of the greenium - European Central Bank - Working Paper 2728 - September 2022