Motivations of an ESR investor
To meet the demands of its market, the investor must integrate the strengths of its environment and ensure the compatibility of its image and its communications as perceived by its customers, employees, partners, and society in general.
Managing their image has become a strategic issue for international companies exposed to the media (often linked to brand management).
Today, the vehicle for this investment is essentially green bonds or green equities or partnerships/grants.
For the investor, it represents a financial asset combining the value of the debt or the asset and an intangible “green label”, with no value apart from the use that will be made of it in a communication.
He is “greening” his balance sheet and records this asset, but is this providing enough confidence to achieve the emergence of a dynamic market?
Outstanding green bonds have increased tenfold in less than 10 years and now exceed $400 billion. France is the world’s third largest issuer of green bonds. Compared to a traditional bond, there are few real differences in the legal terms and conditions, apart from the financial conditions of the issues (pricing) and the commitments made by the issuer regarding the use of the funds. The market for responsible assets undoubtedly exists, but it is far from meeting the needs generated by the pursuit of the SDGs.