Work

Environmental credit products: Where do we stand? A response from an academic content analysis

Year: 2024

Type: article

Abstract: Concerns of the detrimental impacts caused by climate change have led to a rapid expansion in research on sustainability-related factors that has paralleled the proliferation of regulations by various states and authorities. In light of this, the present study primarily focuses on banks’s “environmental” credit products, which recent market research has exhibited significant and growing volumes. The aim is to understand which aspects of these two forms of environmental financing - Green Loans and Sustainability-Linked Loans the existing research have been analyzed. Using content analysis, we conducted a thorough literature review of academic studies. The most intriguing finding from our work is that the provision and adoption of environmental credit products has preceded the implementation of precise legislation to mitigate risks such as greenwashing. Moreover, our findings prove that most research focuses on strategy and performance while only one study covers the aspects related to organization. This research could prove to be a valuable resource for regulators, academics, and banks by providing a comprehensive and precise overview of the work done so far, highlighting the objectives, methodologies, and results achieved. • We use content analysis to research themes on environmental credit products. • This specifically encompasses Green Loans (GLs) and Sustainability-Linked Loans (SLLs). • Our inquiry examines the materiality and double materiality concerning GLs and SLLs. • Our findings show that literature and practice have outpaced legislation on environmental credits. • A proactive compliance approach views ESG factors as opportunities for value creation.

Source: The Quarterly Review of Economics and Finance

DOI: 10.1016/j.qref.2024.101955

Authors: P. Murè, S. Giorgio, V. Antonelli, L. Bittucci

Institutions: Sapienza University of Rome, European Central Bank

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: hybrid

Estimated APC paid: $1,940