No. 1499 - Cui prodest? The heterogeneous impact of green bonds on companies' ESG score
This study analyses, from both a theoretical and empirical perspective, whether issuing green bonds improves companies' environmental performance. The theoretical part develops a model with information asymmetries between investors and issuing companies, which can choose between polluting and clean technology. The empirical analysis, based on a global sample, compares the evolution of the ESG score - an indicator of environmental commitment - between companies that issue green bonds and those that do not.
The theoretical model shows that the introduction of green bonds can bridge the information gap between companies and investors, lowering financing costs for companies that adopt clean technologies. Empirical estimates indicate that issuing green bonds has a greater impact on the environmental performance of the most polluting companies. The effect is more pronounced for bonds issued specifically to finance climate risk mitigation activities.
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13 October 2025
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