No. 1002 - Environmental score and bond pricing: it better be good, it better be green
The paper analyses the relationship between firms' environmental ratings and the cost of financing in the global green bond market. The analysis focuses on the cost of debt of issuing companies as a function of the environmental scores assigned to firms by specialized agencies. It also considers the role of the possible/potential green certification of the individual bonds issued.
Firms with high environmental scores issue their green bonds at lower interest rates than other issuers. At the same time, firms with lower environmental scores also obtain more favourable conditions on green bonds compared with financing through conventional bonds. The results suggest that the market rewards these bonds even after taking account of the issuer's environmental profile.
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12 March 2026
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