– Green Bonds: Debt instruments used to fund environmentally friendly projects. ESG: Focus on Environmental, Social, and Governance factors in decision-making and investments.
– Environmental: Reducing carbon footprints and supporting clean energy. – Social: Promoting financial inclusion and fair practices.
Impact on Banking Stocks
– ESG-aligned banks attract long-term investors and institutional funds. – Green bond issuances enhance revenue streams and reduce regulatory risks.
Future of Green Bonds and ESG in Banking
– Green bond market in India is expected to grow exponentially in the next decade. – Banks integrating ESG into their operations will see higher investor confidence.