Defining and Measuring Green Investments
OECD Working Papers on Finance, Insurance and Private Pensions, No. 24
54 Pages Posted: 7 Mar 2016
Date Written: August 1, 2012
This definitional, stocktaking paper aims to provide a comprehensive review of the concepts and definitions related to "green" investments that are currently used in the market place. The purpose of this research is not to take a position on a specific definition but rather to explore what is being generally used, whether there are commonalties and inconsistencies, and what lessons can be drawn from this analysis.
The paper examines how "green" investments are defined across different asset classes (equities, bonds and alternative investments), as well as providing some estimates of the size of these markets. The paper concludes that, given the lack of consensus on the usage and definition of the term "green", the most productive approach could be to take an open and dynamic stance towards definitions and standards, with international institutions and governments adopting a "governance approach to green investment".
Keywords: pension funds, green investments, green bonds, environmental, social and governance (ESG), green infrastructure, climate change investment
JEL Classification: G15, G18, G23, G28, J26
Suggested Citation: Suggested Citation