• Greenbonds
• Vienna ESG Segment
• Green Investor Report
• Greenwashing
• ESG
• Green Finance
• Green Supporting Factor
• Green Deal

The Vienna Stock Exchange recently reached a significant milestone. The Vienna ESG Segment, launched in May 2022 to consolidate sustainable bonds under the highest transparency standards, has now recorded its 100th green bond. As a result, the number of ESG bonds on the Vienna Stock Exchange has nearly doubled, with an impressive total of EUR 20 billion already raised by bond issuers for sustainable transformation projects.

The list of the top 5 issuers by volume is led by the Republic of Austria, followed by financial institutions HYPO NOE Landesbank AG, Erste Group Bank AG, UniCredit Bank Austria AG, and Raiffeisenbank International AG. Globally, the Republic of Austria ranks an impressive third in terms of green bond issuance volume and has already raised EUR 7 billion for climate-friendly projects. Companies like UBM Development AG and S Immo AG have also successfully issued green bonds specifically tailored to private investors.

First Green Investor Report Released by the Republic of Austria
The Republic of Austria recently published its first Green Investor Report 2022, providing insights into the allocation of funds and the climate and environmental impacts achieved through the federal green financing initiatives. This report is available for download on www.oebfa.at for all interested parties.

Investing in Green Bonds means investing in a world where environmental impact and financial return go hand in hand. Such investments not only bring ecological benefits but are also characterized by long-term stability and returns, thereby reducing risk. They allow investors to diversify their portfolios in a sustainable manner. Issuers, on the other hand, benefit from increased visibility and service quality, contributing to the development of green technologies and creating a better future for future generations.

A Sustainable Future
Green Bonds are an essential tool—also for companies—to mobilize capital for environmentally friendly projects and accelerate the transition to a sustainable economy. The Vienna ESG Segment requires issuers to adhere to strict transparency, quality, and disclosure criteria, as well as to recognized ESG standards set by the Vienna Stock Exchange. These standards are aligned with the guidelines of the International Capital Market Association (ICMA), including the Green Bond Principles and Social Bond Principles. Compliance with these standards and the intended use of proceeds are monitored by independent institutions, known as Second Party Opinions. Additionally, the Vienna Stock Exchange provides a comprehensive guide on non-financial reporting to help companies meet the growing demands in the ESG field.

Recognized Standards
To ensure increased transparency, the Vienna Stock Exchange has established clear admission and follow-up obligations for sustainable bonds. These can follow either the principle of "Sustainability-Linked Bonds" or "Use of Proceeds Bonds." Sustainability-Linked Bonds are bonds that promise to achieve predefined sustainability goals (KPIs) and thereby improve overall company sustainability performance within a set timeframe. In the case of Use of Proceeds Bonds, the proceeds from the issuance are invested in predefined projects, which can be categorized into Green Bonds, Social Bonds, or Sustainability Bonds.

Personally, I hope that more and more corporate bonds will be issued in this segment and take the bold step to go public. This provides companies and investors the opportunity to work together towards a sustainable future. Investors are increasingly recognizing the value of sustainable investments, and companies engaging in this path benefit from enhanced credibility and improved access to capital.

Original Contribution:
Guest Commentary by Dr. Susanne Lederer-Pabst in Börse Social Ausgabe 08/2023