Handbook on Sustainable Investments
Chapter 14. Green Bonds •• Green bonds are a suitable instrument for funding renewable energies and hence the energy transition. •• The market for green bonds is based on voluntary standards and is gradually becoming more structured. Chapter 15. Sustainable Infrastructure Investments •• The consideration of ESG criteria is especially appropriate in the case of infrastructure projects due to their inherent longevity and capital intensity. •• Applying ESG criteria creates added value, brings additional benefits for the environment, society, and the economy, and has the potential to make infrastructure investments more attractive. Chapter 16. Sustainable Private Equity Investments •• Private equity investors have inherent corporate governance advantages unlike investors in other asset classes. This opens opportunities for better sustainable investments and higher investment returns. •• Compared with primary or secondary investments, direct private equity exposures offer better opportunities to integrate ESG criteria and create social benefits. Chapter 17. Sustainable Real Estate •• Sustainable real estate today accounts for a significant share of the property market as a whole and offers great investment potential. •• Sustainable properties are economically attractive and offer risk diversification. •• Green labels, performance indicators, and benchmarking initiatives increase transparency. Chapter 18. Integrating Sustainability into Commodity Investing •• One of the main discussions concerning commodity investments and sustainability issues revolves around the impact of physical and derivative investors on commodity prices. •• Investors in commodity derivatives fulfil an important role in food security through their contribution to lower price volatility, given that the 6
