Short-term Markets Tackling the Long-term Issue of ESG

ESG covers a wide range of issues encompassing the notion that a business has a social responsibility to look after people and the planet.

The combination of these social elements and, increasingly, regulatory imperatives, means that many businesses have been taking ESG factors into consideration in recent years, fuelling the growth of the green bond market and putting a clearer focus on the ESG aspects for their treasurers.

But the market is far from mature. “While we have seen some entries into this space, overall green, sustainability-linked, and social short-term issuance, such as commercial paper (CP), remains negligible to date,” notes Fayvilevich. Fitch Ratings identified just 15 ESG CP programmes at the end of H1 21, although there are some developments on the asset- backed commercial paper side coming through.

A Treasurer’s Guide to the Latest Investment Trends

This article is part of a playbook, created by TMI and Northern Trust Asset Management, which explores current trends in short-term investing.

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Environmental, Social & Governance (ESG)Liquidity ManagementMoney Market Funds (MMFs)RegulationShort Term InvestmentLess