Abstract:
Greenhouse gases emissions are the drivers of climate change and recently a
connection between the financial sector and environmental impacts has been
established. This thesis aims to explore how climate change and finance are linked,
and in which way green financial instruments can help the implementation of
decarbonization plans; in particular, the strategies of investment in sustainable
activities of a group of companies from the utilities sector has been assessed, in
relation to the issuance of green bonds.
First the research analyzes the current state of the climate alteration and the exposure
to climate risk of the financial market, together with an excursus on international
initiatives created to address the problem.
Green bonds requirements are then assessed, focusing on the differences that could
influence market players. Companies selected from the utilities sector are described
and then, by comparing green bonds issuers to non-issuers using capital expenditures
and GHG emissions, it is evaluated if the presence of green financial instruments can
effectively have an impact on the strategies to reach net zero emissions. Results,
though hindered by the lack of parameters, show mainly that the companies do not
totally exploit green finance, with sustainable activities that could be eligible but are
not considered; additionally, higher disclosure could provide better conditions for a
more in depth analysis.
