Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers

The world is on an unsustainable path. Financial sector participants are becoming more conscious of the impact of their economic, social and environmental footprint. As the investor community makes progress towards integrating environment, social a...

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Main Authors:	Boitreaud, Sebastien, Gratcheva, Ekaterina M., Gurhy, Bryan, Paladines, Cindy, Skarnulis, Andrius
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT
Online Access:	http://documents.worldbank.org/curated/en/186931603441706045/Riding-the-Wave-Navigating-the-ESG-Landscape-for-Sovereign-Debt-Managers http://hdl.handle.net/10986/34673

id	okr-10986-34673
recordtype	oai_dc
spelling	okr-10986-346732021-06-14T09:54:27Z Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT The world is on an unsustainable path. Financial sector participants are becoming more conscious of the impact of their economic, social and environmental footprint. As the investor community makes progress towards integrating environment, social and governance (ESG) factors into investment mandates, particularly for equities and corporate debt, integrating these factors into the sovereign debt asset class has lagged- although investment practices and approaches are evolving. As the financial ecosystem changes, the Debt Management Office (DMO), as the main financing arm of the state, would benefit greatly from understanding how these changes affect the core Public Debt Management (PDM) mandate and how to respond to the growing investor demand for sustainable finance. The paper presents an overview of areas in which DMOs can respond to the changing world and proposes six ESG market readiness factors as well as a framework to help formulate DMO strategy in the area of ESG investing. The paper also concludes that in less developed markets, given weak institutional arrangements, it is often better to concentrate development efforts on the local capital market as this will ultimately support a more sustainable economy in the long run. 2020-10-27T19:21:50Z 2020-10-27T19:21:50Z 2020-10-22 Working Paper http://documents.worldbank.org/curated/en/186931603441706045/Riding-the-Wave-Navigating-the-ESG-Landscape-for-Sovereign-Debt-Managers http://hdl.handle.net/10986/34673 English Equitable Growth, Finance and Institutions Insight; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT
spellingShingle	SOVEREIGN DEBT GREEN BONDS CENTRAL BANK ENVIRONMENTAL SUSTAINABILITY EQUITABLE GROWTH EMERGING MARKET ECONOMIES PUBLIC DEBT MANAGEMENT Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers
relation	Equitable Growth, Finance and Institutions Insight;
description	The world is on an unsustainable path. Financial sector participants are becoming more conscious of the impact of their economic, social and environmental footprint. As the investor community makes progress towards integrating environment, social and governance (ESG) factors into investment mandates, particularly for equities and corporate debt, integrating these factors into the sovereign debt asset class has lagged- although investment practices and approaches are evolving. As the financial ecosystem changes, the Debt Management Office (DMO), as the main financing arm of the state, would benefit greatly from understanding how these changes affect the core Public Debt Management (PDM) mandate and how to respond to the growing investor demand for sustainable finance. The paper presents an overview of areas in which DMOs can respond to the changing world and proposes six ESG market readiness factors as well as a framework to help formulate DMO strategy in the area of ESG investing. The paper also concludes that in less developed markets, given weak institutional arrangements, it is often better to concentrate development efforts on the local capital market as this will ultimately support a more sustainable economy in the long run.
format	Working Paper
author	Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius
author_facet	Boitreaud, Sebastien Gratcheva, Ekaterina M. Gurhy, Bryan Paladines, Cindy Skarnulis, Andrius
author_sort	Boitreaud, Sebastien
title	Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers
title_short	Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers
title_full	Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers
title_fullStr	Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers
title_full_unstemmed	Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers
title_sort	riding the wave : navigating the esg landscape for sovereign debt managers
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/186931603441706045/Riding-the-Wave-Navigating-the-ESG-Landscape-for-Sovereign-Debt-Managers http://hdl.handle.net/10986/34673
_version_	1764481404568076288

Riding the Wave : Navigating the ESG Landscape for Sovereign Debt Managers

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