Update from Dominique Moerenhout

Welcome to the first 2022 edition of our magazine. I’m very pleased to be starting the year with our flagship Insights events in London, Paris, Brussels and Germany, discussing with you the year ahead and all the opportunities it brings.

With climate change incessantly at the very top of the agenda for governments and corporates alike, green bonds appear to be taking increasingly centre stage.

Green, social and sustainable bonds have been growing exponentially in recent years. BBVA Global Markets Research estimates that the current size of the green, social and sustainable bond market is approaching USD 1 trillion, equivalent to an estimated 0.86% of the total bonds in circulation. At the same time, the EU is set to become the largest issuer of green bonds since it announced the target of raising 30% of the NextGenerationEU recovery plan through green bonds, amounting to up to EUR 250 billion.

The listed real estate is no different, and in the last twelve months, EPRA members have issued over EUR 13.2 billion in green bonds. As the green bonds market becomes more mature and accessible to listed property companies with a lower financial cost, green issuance is used to invest in the renovation and upgrade of the existing building stock while furthering companies’ decarbonisation strategies.

The EU Taxonomy and the European Green Bond Standard are other policy initiatives supporting financial markets to adopt more sustainable financial products, with the aim of providing greater clarity on sustainable economic activities for investors and companies.

The pandemic has presented us with an opportunity to make real progress in the fight against climate change, and I believe green bonds will sit at the very heart of this green recovery.

I invite you to read more sustainability-related topics in the core of this magazine and, as always, look forward to discussing this and more with you, in person, at our future events.

Finally, and as always, I would like to welcome our newest members: Adriano Care, Aedas Homes, Premia Properties and Stenhus Fastigheter.