Question

What are the benefits of having a sustainable capital market? Provide examples with your answer

Answer 1

Benefits

• You gain access to new investors thereby diversifying and expanding your treasury operations.
• You shift your company’s strategy toward greater sustainability.
• You boost your image in the market
• Sustainable bonds are no different than traditional capital market financing instruments in terms of risks and liabilities.

Example explaining all the points:

When you work towards sustainability, it adds a goodwill to your image as customers/consumers nowadays are more inclined towards sustainable company and product. This increase in goodwill and inclination of customers/consumers attracts investors as they find more them to be profitable. All this leads to more responsibility and bind company towards setting more sustainable goals.