Europe Trounces U.S., Asia in Race to Turn Capital Markets Green

Ethical ambitions are becoming the centerpiece of European credit markets, making the region the undisputed world leader in sustainable financing.

One dollar out of every $5 raised this year by European issuers has been linked to borrowers’ performance in Environmental, social and governance (ESG) initiatives. That ratio increases to one out of $3 for corporate loans. Those shares in overall loans are several times higher than the proportions for the Americas and Asia-Pacific.

The distinctive lead for European borrowers comes at a time when the post-pandemic recovery is driving a new investment cycle, while investors insist more than ever ...