Net green/fossil bond syndication league table - June 2022

4 minute read

Here, we provide an update on net green/fossil DCM fee generation from key banks, for the June 22 IMM date. With increased scrutiny of counterparties' ESG policies and some real-world examples of investors and bond issuers starting to apply ‘The Box’ type of strategies, going forward we will start producing updated net green/fossil syndication league tables well ahead of IMM dates (ie. the third Wednesday of March, June, September and December).

Clearly, updating counterparties and specifically reducing fee flow to counterparties that are non-aligned on asset owner/manager climate strategy, is more effective around times of increases in trading flow. As there are a plethora of financial contracts that roll on IMM dates, e.g. equity and treasury futures, credit derivatives and more, refreshing counterparty lists ahead of that seems a reasonable thing to do. We show the league table in terms of fees for the year of 10 Jun 2021 to 10 Jun 2022, which would have been relevant for the June 22 IMM date.

Rankings are based on the net green/fossil fee number, which is the percentage fee generation in green bonds versus the percentage fee generation in fossil sectors (percentages as of total fee revenue). This measure is designed to reflect, irrespective of size of the counterparty, how tilted the capital market activities are to driving green versus fossil investments.