Sustainable funds have become relevant: assets surpassed $30tn this year. Transition-labelled funds are growing fastest
Sustainable bonds are scaling: cumulative GSS+ issuance reached $6.9tn last year. Green bonds dominate
For CFOs, this is not only about lower financing costs of capital but also accessing new pools of capital and credible metrics
… but signals can be mixed
Well-priced
Short term (1–3 years)
→ Post-disaster risks (e.g. wildfires, hurricanes)
→ Governance quality
→ Carbon pricing (e.g., EU ETS)
Long term (3+ years)
→ Energy efficiency
→ GSS+ bond "greenium"
→ Some transition risks
Underpriced
Short term (1–3 years)
→ SLB repricing delays
→ Human capital
→ Supply chain controversies
Long term (3+ years)
→ Chronic physical risks
→ Sovereign climate vulnerability
→ Stranded asset risk
→ Nature loss
