Riding the Wave
The world is on an unsustainable path. Financial sector participants are becoming more conscious of the impact of their economic, social and environmental footprint. As the investor community makes progress towards integrating environment, social and governance (ESG) factors into investment mandates, particularly for equities and corporate debt, integrating these factors into the sovereign debt asset class has lagged- although investment practices and approaches are evolving. As the financial ecosystem changes, the Debt Management Office (DMO), as the main financing arm of the state, would benefit greatly from understanding how these changes affect the core Public Debt Management (PDM) mandate and how to respond to the growing investor demand for sustainable finance. The paper presents an overview of areas in which DMOs can respond to the changing world and proposes six ESG market readiness factors as well as a framework to help formulate DMO strategy in the area of ESG investing. The paper also concludes that in less developed markets, given weak institutional arrangements, it is often better to concentrate development efforts on the local capital market as this will ultimately support a more sustainable economy in the long run.
Main Authors: | , , , , |
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Format: | Working Paper biblioteca |
Language: | English |
Published: |
World Bank, Washington, DC
2020-10-22
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Subjects: | SOVEREIGN DEBT, GREEN BONDS, CENTRAL BANK, ENVIRONMENTAL SUSTAINABILITY, EQUITABLE GROWTH, EMERGING MARKET ECONOMIES, PUBLIC DEBT MANAGEMENT, |
Online Access: | http://documents.worldbank.org/curated/en/186931603441706045/Riding-the-Wave-Navigating-the-ESG-Landscape-for-Sovereign-Debt-Managers https://hdl.handle.net/10986/34673 |
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dig-okr-10986346732024-08-07T18:46:08Z Riding the Wave Navigating the ESG Landscape for Sovereign Debt Managers Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT The world is on an unsustainable path. Financial sector participants are becoming more conscious of the impact of their economic, social and environmental footprint. As the investor community makes progress towards integrating environment, social and governance (ESG) factors into investment mandates, particularly for equities and corporate debt, integrating these factors into the sovereign debt asset class has lagged- although investment practices and approaches are evolving. As the financial ecosystem changes, the Debt Management Office (DMO), as the main financing arm of the state, would benefit greatly from understanding how these changes affect the core Public Debt Management (PDM) mandate and how to respond to the growing investor demand for sustainable finance. The paper presents an overview of areas in which DMOs can respond to the changing world and proposes six ESG market readiness factors as well as a framework to help formulate DMO strategy in the area of ESG investing. The paper also concludes that in less developed markets, given weak institutional arrangements, it is often better to concentrate development efforts on the local capital market as this will ultimately support a more sustainable economy in the long run. 2020-10-27T19:21:50Z 2020-10-27T19:21:50Z 2020-10-22 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/186931603441706045/Riding-the-Wave-Navigating-the-ESG-Landscape-for-Sovereign-Debt-Managers https://hdl.handle.net/10986/34673 English Equitable Growth, Finance and Institutions Insight; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf World Bank, Washington, DC |
institution |
Banco Mundial |
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Estados Unidos |
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biblioteca |
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America del Norte |
libraryname |
Biblioteca del Banco Mundial |
language |
English |
topic |
SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT |
spellingShingle |
SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius Riding the Wave |
description |
The world is on an unsustainable path.
Financial sector participants are becoming more conscious of
the impact of their economic, social and environmental
footprint. As the investor community makes progress towards
integrating environment, social and governance (ESG) factors
into investment mandates, particularly for equities and
corporate debt, integrating these factors into the sovereign
debt asset class has lagged- although investment practices
and approaches are evolving. As the financial ecosystem
changes, the Debt Management Office (DMO), as the main
financing arm of the state, would benefit greatly from
understanding how these changes affect the core Public Debt
Management (PDM) mandate and how to respond to the growing
investor demand for sustainable finance. The paper presents
an overview of areas in which DMOs can respond to the
changing world and proposes six ESG market readiness factors
as well as a framework to help formulate DMO strategy in the
area of ESG investing. The paper also concludes that in less
developed markets, given weak institutional arrangements, it
is often better to concentrate development efforts on the
local capital market as this will ultimately support a more
sustainable economy in the long run. |
format |
Working Paper |
topic_facet |
SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT |
author |
Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius |
author_facet |
Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius |
author_sort |
Boitreaud, Sebastien |
title |
Riding the Wave |
title_short |
Riding the Wave |
title_full |
Riding the Wave |
title_fullStr |
Riding the Wave |
title_full_unstemmed |
Riding the Wave |
title_sort |
riding the wave |
publisher |
World Bank, Washington, DC |
publishDate |
2020-10-22 |
url |
http://documents.worldbank.org/curated/en/186931603441706045/Riding-the-Wave-Navigating-the-ESG-Landscape-for-Sovereign-Debt-Managers https://hdl.handle.net/10986/34673 |
work_keys_str_mv |
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1807159096940429312 |