Sustainable Finance Round Up: September 2023
Our Monthly Round Up series provides clients with condensed trends and take-aways on sustainable debt market movement.
September sustainable bond issuance totalled U$90B, a strong performance compared to July and August (which averaged U$58B) as issuers returned to the primary market. Year to date, sustainable bond volumes remain ahead of 2022 by +2%, bolstered by record-setting YTD green bond issuance of U$503B. Notably, the CAD sustainable debt market saw an uptick in activity compared to September 2022 headlined by the largest CAD green loan totalling C$5.2B from Northland Power.
Key takeaways from Climate Week NYC
Sustainability experts, corporate leaders, and market participants convened in New York in September to discuss ESG strategy, investor preferences, policy developments, and more as organizations navigate a dynamic ESG landscape and market backdrop.
- Call for transition plans: Discussions this year centred on the need for credible transition plans across all sectors. Asset managers are refining their views and assessment of transition plans with a focus on science-based emissions targets, alignment with business strategy, engagement and accountability measures.
- All eyes on regulation: ESG regulatory efforts took centre stage led by California announcing a landmark climate disclosure bill that would require ~5,000 companies to disclose GHG emissions across Scopes 1, 2, and 3
- Defining 'engagement': Investors play a key role in prioritizing ESG action at the corporate level and are keen to engage. However, questions remain around the appropriate measures for engagement when corporate strategies pivot, targets are missed and transitions lag.
- Financing transition: In a BlackRock survey (1), 56% of investor respondents indicated they plan to increase allocations to 'transition strategies' in the next 1-3 years.
- Source: BlackRock, Global perspectives on investing in the low-carbon transition
TD Securities' ESG Solutions
TD Securities' ESG Solutions team is a centralized ESG resource across Global Markets and Corporate & Investment Banking, bringing a fully integrated approach to ESG advisory in support of our clients' sustainability and decarbonization goals.