The Effects of ESG Performance and Sustainability Disclosure on Gss [1] Bonds’ Yields and Spreads: A Global Analysis [1] Green, Social, Sustainable

27 Pages Posted: 10 Jul 2024

See all articles by Oliviero Roggi

Oliviero Roggi

University of Catania

Luca Bellardini

Bocconi University - GREEN Research Centre

Sara Conticelli

University of Florence

Abstract

Considering a sample of 3,960 GSS bonds, this study investigates the effects of the issuer’s ESG performance on both the issue-specific yield and its spread vis-à-vis a sovereign comparable. The findings highlight that a greater commitment to the sustainable transition is a winning strategy, for a company, to reduce the cost of debt for future projects. While the risk-reducing power of ESG performance does not appear to differ based on a divide between advanced economies and emerging markets, we find that the real enabler of curbing the unexplained portion of risk is a detailed disclosure on the use of proceeds.

Keywords: GSS bonds, debt capital markets, ESG, sustainability, yield spread, credit rating

Suggested Citation

Roggi, Oliviero and Bellardini, Luca and Conticelli, Sara, The Effects of ESG Performance and Sustainability Disclosure on Gss [1] Bonds’ Yields and Spreads: A Global Analysis [1] Green, Social, Sustainable. Available at SSRN: https://ssrn.com/abstract=4891243 or http://dx.doi.org/10.2139/ssrn.4891243

Oliviero Roggi (Contact Author)

University of Catania ( email )

Monastero dei Benedettini
Piazza dante 32
95124 Catania, 95124
Italy

Luca Bellardini

Bocconi University - GREEN Research Centre

Via Röntgen, 1
Milan, MI 20136
Italy

HOME PAGE: http://www.green.unibocconi.it

Sara Conticelli

University of Florence ( email )

Piazza di San Marco, 4
Florence, 50121
Italy

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