13:30 pm -14:40 pm Break out – Academic Paper Panel – ESG Ratings and Green Bonds (Session 5) Paper A: Assessing Companies Practices on Decent Work Celine Louche, Delautre G. and Balvedi Pimentel G., Audencia Business School, France Paper B: Catalyzing the Growth of Green Bonds: A Closer Look at the Drivers and Barriers of This Sustainable Finance Market in Canada Saravade, V. and Weber, O., University of Waterloo, Canada.
Session Chair: D’Arcy O’Farrell, Sprott School of Business, Carleton University
Paper A: Assessing companies’ practices on decent work: an analysis of ESG rating methodologies
Louche, C., Delautre, G., and Balvedi Pimentel, G.
Abstract: ESG rating agencies have become a central actor in providing information and assessing companies on social environmental and governance (ESG) dimensions. Although research has explored the construction of ESG metrics, little is known about how agencies evaluate decent work. Building on the analysis of six ESG agencies, this paper investigates how these actors measure and assess companies on decent work-related items and identifies the challenges they face in this endeavour. The underlying question of the paper is to better understand the capacity of responsible investment and ESG screening in promoting and improving decent work.
Paper B: Catalyzing the growth of green bonds: A closer look at the drivers and barriers of this sustainable finance market in Canada
Saravade, V. and Weber, O.
Abstract Being the popular face of sustainable finance around the world, the green bond market provides the perfect opportunity to examine how the financial sector is reacting to the opportunities and risks posed by the shift towards the low-carbon climate resilient (LCR) economy. Given the role of such capital markets in driving debt financing towards various sectors and industries, it becomes important to understand what motivates financial sector decision-making as the risks become more apparent. Furthermore, resource-based economies like Canada are also in much need of reducing their financial sector’s exposure to fossil fuels and transitioning to a LCR economy before it’s too late. Hence, our study looked at the case of the Canadian green bond market and its participants to examine how they were driving growth in the market as well as achieving some aspect of transition. By undertaking key market interviews and conducting an online survey, our study found that green bonds were a key factor in mainstreaming the notion of sustainable finance through its explicit use of a green labels and establishing new norms like enhanced use-of-proceeds disclosures. Our results also suggested that market challenges like greenwashing and environmental impact or additionality needed to be considered for the market to reach its potential. Our recommendations to address these gaps and opportunities included involving more policymakers and regulators in the market, having a more scientifically backed, integrated and data-driven approach in how green bond impact gets measured as well as exploring new project areas like nature-based solutions or climate adaptation for future