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From Promise to Performance: The Environmental Impact of Green Bond Issuance on Corporate Emissions

Jisland, Hugo LU and Henriksson, Tom LU (2025) EOSK12 20251
Department of Economic History
Abstract
This thesis examines whether corporate green bond issuance leads to measurable
improvements in environmental performance among European firms in high-emitting sectors. Using firm-level panel data from 2015–2022, we match green bond issuers with conventional bond issuers using nearest-neighbour matching with Mahalanobis distance. Employing a difference-in-differences approach, we analyse changes in greenhouse gas (GHG) emissions at two and three years post-issuance. Our results indicate that green bond issuance is associated with a statistically significant reduction in emissions intensity compared to
conventional bond issuance. Further, only bonds certified by a third party exhibit a significant impact on emissions; non-certified bonds... (More)
This thesis examines whether corporate green bond issuance leads to measurable
improvements in environmental performance among European firms in high-emitting sectors. Using firm-level panel data from 2015–2022, we match green bond issuers with conventional bond issuers using nearest-neighbour matching with Mahalanobis distance. Employing a difference-in-differences approach, we analyse changes in greenhouse gas (GHG) emissions at two and three years post-issuance. Our results indicate that green bond issuance is associated with a statistically significant reduction in emissions intensity compared to
conventional bond issuance. Further, only bonds certified by a third party exhibit a significant impact on emissions; non-certified bonds show no clear effect, highlighting ongoing greenwashing concerns. These findings suggest that green bonds can contribute to decarbonisation, but the environmental benefits depend on credible certification. The study provides new evidence on the real-world effectiveness of green bonds and underscores the importance of robust verification standards in sustainable finance. (Less)
Please use this url to cite or link to this publication:
author
Jisland, Hugo LU and Henriksson, Tom LU
supervisor
organization
course
EOSK12 20251
year
type
M2 - Bachelor Degree
subject
keywords
green bonds, corporate green bonds, green bond issuance, emissions intensity
language
English
id
9197914
date added to LUP
2025-06-16 11:40:39
date last changed
2025-06-16 11:40:39
@misc{9197914,
  abstract     = {{This thesis examines whether corporate green bond issuance leads to measurable
improvements in environmental performance among European firms in high-emitting sectors. Using firm-level panel data from 2015–2022, we match green bond issuers with conventional bond issuers using nearest-neighbour matching with Mahalanobis distance. Employing a difference-in-differences approach, we analyse changes in greenhouse gas (GHG) emissions at two and three years post-issuance. Our results indicate that green bond issuance is associated with a statistically significant reduction in emissions intensity compared to
conventional bond issuance. Further, only bonds certified by a third party exhibit a significant impact on emissions; non-certified bonds show no clear effect, highlighting ongoing greenwashing concerns. These findings suggest that green bonds can contribute to decarbonisation, but the environmental benefits depend on credible certification. The study provides new evidence on the real-world effectiveness of green bonds and underscores the importance of robust verification standards in sustainable finance.}},
  author       = {{Jisland, Hugo and Henriksson, Tom}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{From Promise to Performance: The Environmental Impact of Green Bond Issuance on Corporate Emissions}},
  year         = {{2025}},
}