Nomura says to study long-term growth of ESG bond market

Nomura forms research team to study the ESG bond market

Nomura Holdings has established a research group to focus on the sustainable development of the bond market adhering to environmental, social and governance (ESG)  standards.

Nomura, through its unit Nomura Institute of Capital Markets Research (NICMR), plans a cross-sector collaborative initiative comprising experts from industry, government and the academe. The group will be chaired by  Takeshi Mizuguchi , professor at Takasaki City University of Economics.

NICMR's new research group will look at the various challenges of issuing and investing in ESG bonds, and measures needed to ensure the steady and sustainable growth of the market.

A considerable amount of research has been done on the impact ESG investing has on equity market performance. Given the large number of ESG bonds including green bonds issued in recent years, there is a need for more research on how the ESG bond market will develop in the future.

The firm believes this initiative will contribute to achieving the United Nation's Sustainable Development Goals. The new research group had its first meeting on February 22 this year, and will meet periodically throughout the 2018 fiscal year.

In April 2006, the United Nations announced the Principles for Responsible Investment to encourage institutional investors to take ESG factors into consideration when making investment decisions. Since then, the concept of aligning investment objectives with environmental and social values has taken root.

NICMR intends to publish the findings of the group's research for the 2018 fiscal year and make recommendations based on these findings.

Date

13 Mar 2018

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