Market overview

• Global sustainable bond issuance totalled US$59.3bn in the first quarter of 2020, 32% lower than in Q4, according to a Moody’s report.
• However, social bond issuance totalled US$11.9bn, a new quarterly record, while sustainability bonds registered US$13.4bn. Moody’s anticipates a greater emphasis on social finance and sustainable development will be one of the lasting outcomes of the COVID-19 crisis.

Investor and market news

• The latest Morningstar Global Sustainable Fund Flows report reveals through first quarter of 2020, investors globally put US$45.6bn into funds focused on ESG. This compares with global outflows of US$384.7bn for the overall fund universe.
• 155 global CEOs have signed a statement urging governments around the world to align their COVID-19 economic aid and recovery efforts with the latest climate science.

Read the NAB Sustainable Finance Update: May 2020