A Green Sensibility? Examining the Issuance of Green Bonds in the Nordic Region.

Abstract: Green Bonds are debt instruments issued by companies whose proceeds are used to finance projects that promote sustainability. Consequently, they act as measures of a company’s contribution towards the environment. However, they are often criticised as virtue-signalling. This paper explores the issuance of green bonds on two levels: the corporate level and the role of the region, here the Nordic Region, in promoting sustainability. Using the least square methods, I find that while company scores may increase, it is the previous year’s score that has a larger impact than green bond issuance. I also find evidence that the environmental component of a region minutely affects the outcomes on the score of a company.