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Time to go green? Process vs outcome - and what bonds are best for you

^{Published on 2024-12-19 06:40:48 - IMD business school}
 

• Green and sustainability-linked bonds offer companies new funding to reach urgent sustainability goals. Salvatore Cantale and Barry Gavin explain how to make the most of a booming market.

The article from IMD Business School discusses the importance of integrating sustainability into business practices, focusing on the distinction between process and outcome in green initiatives. It highlights how companies are increasingly adopting green bonds as a financial instrument to fund environmentally friendly projects. The piece explains that while the outcome of sustainability efforts is crucial, the process—how these initiatives are implemented—is equally important for ensuring long-term success and credibility. It delves into different types of green bonds, such as green use of proceeds bonds, green revenue bonds, and green project bonds, each serving different purposes in funding sustainable projects. The article also touches on the challenges of greenwashing, where companies might misleadingly market their products or initiatives as environmentally friendly. It emphasizes the need for transparency, standardization, and third-party verification to maintain trust and effectiveness in green financing. Ultimately, the article advocates for a balanced approach where both the process and the outcome of sustainability efforts are rigorously managed to truly benefit the environment.

Read the Full IMD business school Article at:
[ https://www.imd.org/ibyimd/sustainability/time-to-go-green-process-vs-outcome-and-what-bonds-are-best-for-you/ ]

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