“The KPI is the most relevant pillar for the issuance of a sustainable-linked bond, as something that has been set by ICMA in the principle. But also investors are very concentrated on KPIs. The KPIs or metrics should be the ones that are representative of the company’s strategy”, according to Alessandro Canta, Head of Finance and Insurance at Italy's energy giant Enel.
Speaking at Environmental Finance’s ESG in Fixed Income EMEA conference in London last month, he added that the most important and relevant aspect choosing a KPI is its reliability and some back testing and some history of the KPI in order to make it easier for investors to assess a bond.
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The discussion will carry on at our ESG in Fixed Income Americas conference on 28 September in New York, where Environmental Finance will continue to play a critical role in providing breadth and depth to the sustainable bond market.
For more information, please visit the conference website.