Global PSSL CIC works to reform green bond lending
04 July 2025 UK
Image: Usman/stock.adobe.com
Global Principles for Sustainable 糖心vlog Lending CIC (Global PSSL CIC) has released a call for action paper regarding green bond lending.
The paper identifies a critical transparency gap in current securities lending, repo, and derivatives frameworks, says Global PSSL CIC, where green-labelled bonds may be used in ways that undermine their original environmental purpose.
Radek Stech, CEO of Global PSSL & Founder of ABC Score, says: 鈥淭his paper offers a constructive contribution to an evolving conversation.
鈥淎s green bonds mature, it is important to ensure that post-issuance practices 鈥� including lending and repo 鈥� align with their original sustainability commitments.鈥�
Entitled 鈥楪reen Bonds Under Opaque Loans: A Call to Pause and Reform Green Bond Lending Practices through Transparent and Fintech-Enabled Solutions鈥�, the paper calls on investors, policymakers, and regulators to introduce greater transparency and stewardship in the post-issuance treatment of green bonds.
Furthermore, it proposes a solution: a set of targeted metrics designed to help organisations across the green bond value chain close transparency gaps, build investor trust, and strengthen the integrity of sustainable finance.
These metrics are to be integrated into the upcoming ABC Score framework. Members of Global PSSL鈥檚 Asset Owners Council will support testing of these metrics in the second half of 2025.
Sarah Wilson, CEO at Minerva Analytics, adds: 鈥淒ata integrity is a critical ingredient for building market trust. Asset owners are clear that there is no place for greenwashing in any part of their responsible investment strategies.
鈥淭he ABC Score framework is a timely market-driven response to supporting a high integrity green bonds market.鈥�
Michael Riggs, non-executive director at the Global PSSL Secretariat, notes: 鈥淚 see the ABC Score as a game changer, cutting through the greenwashing that cloaks bad investment practices from public view. The ABC Score will give greater transparency to the market.鈥�
The paper identifies a critical transparency gap in current securities lending, repo, and derivatives frameworks, says Global PSSL CIC, where green-labelled bonds may be used in ways that undermine their original environmental purpose.
Radek Stech, CEO of Global PSSL & Founder of ABC Score, says: 鈥淭his paper offers a constructive contribution to an evolving conversation.
鈥淎s green bonds mature, it is important to ensure that post-issuance practices 鈥� including lending and repo 鈥� align with their original sustainability commitments.鈥�
Entitled 鈥楪reen Bonds Under Opaque Loans: A Call to Pause and Reform Green Bond Lending Practices through Transparent and Fintech-Enabled Solutions鈥�, the paper calls on investors, policymakers, and regulators to introduce greater transparency and stewardship in the post-issuance treatment of green bonds.
Furthermore, it proposes a solution: a set of targeted metrics designed to help organisations across the green bond value chain close transparency gaps, build investor trust, and strengthen the integrity of sustainable finance.
These metrics are to be integrated into the upcoming ABC Score framework. Members of Global PSSL鈥檚 Asset Owners Council will support testing of these metrics in the second half of 2025.
Sarah Wilson, CEO at Minerva Analytics, adds: 鈥淒ata integrity is a critical ingredient for building market trust. Asset owners are clear that there is no place for greenwashing in any part of their responsible investment strategies.
鈥淭he ABC Score framework is a timely market-driven response to supporting a high integrity green bonds market.鈥�
Michael Riggs, non-executive director at the Global PSSL Secretariat, notes: 鈥淚 see the ABC Score as a game changer, cutting through the greenwashing that cloaks bad investment practices from public view. The ABC Score will give greater transparency to the market.鈥�
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