JEI Vol 10, no 1 (2020)

Green Bonds: The Time Is Now – Angelo A. Calvello, PhD Green Bonds: The Shape of Green Fixed-Income Investing to Come – Kim Schumacher, PhD Estimating Forest Sustainability Bond Prices for Natural Resource and Ecosystem Services Markets – Richard L. Bernknopf, PhD, and Craig D. Broadbent, PhD A Comment on “Estimating Forest Sustainability Bond Prices for Natural Resource and Ecosystem …

Cover design by Nancy Gelband


Does a Higher Degree and Higher Cost of Leverage Worsen Corporate Environmental Performance?

Micol Alexandria Chiesa, PhD
Lecturer in Circular Economy at Oxford University

Suborna Barua, PhD
Associate Professor at the Department of International Business,
University of Dhaka

The increasing global focus on environmental investments raises concern about the relationship between a firm’s cost of capital and its corporate environmental (ESG) performance. However, there is little research on the topic.

The previous literature on corporate finance has found that capital constraints play a role in companies’ investment decisions. This article contributes to the existing corporate finance literature by looking at the impact of the cost of corporate debt and the degree of leverage on corporate environmental performance (CEP). The literature identifies debt financing as an important resource for helping organizations implement their strategies, particularly environmental ones. However, the findings suggest that a prospective higher cost of debt may cause firms to deviate from their environmental objectives, thus achieving lower CEP.


Call for Articles and Papers:  Environmental innovations re-energizing the investment world

The Journal of Environmental Investing

April–May 2021

The Journal of Environmental Investing (JEI) is now accepting articles and papers focused on inventive ideas for creating a low-carbon, sustainable world through investments in new technologies, skills, and perspectives.

We are currently looking for papers and articles on the following topics:

  • Cap and Trade
  • Voluntary Carbon Offsets
  • Carbon

The JEI publishes editorially reviewed research manuscripts, white papers, working papers, point of view pieces, reports on environmental investment data, and book reviews.

Additional topics under consideration include water and investing, environmental data and materiality, social implications of a global energy transition, climate bonds, green infrastructure, and climate policy and environmental investing.

We also invite investors, academics, consultants, and critical thinkers from all disciplines and industries to submit their original research and case studies for possible inclusion in upcoming JEI issues.

Abstracts, papers, articles, and proposals can be submitted via email at submissions [at]

For more information, see the JEI’s current and archived issues at or contact us at info [at] the Suggested author guidelines are available for your reference on the JEI website, under Information for Contributors; information on the types of submissions accepted can be found under Types of Manuscripts Sought.

The Journal of Environmental Investing (JEI) is an interdisciplinary, open-access publication featuring critical, vetted information relating to the current environmental investing imperative. The JEI presents research papers, commentaries, case studies, and reviews on manifold topics. It continues to focus on the critical issues of creating, deploying, financing, structuring, and managing successful market-based solutions to the environmental challenges of the day.


Quantitative Credit-Rating Models Including ESG Factors

Christoph Klein, CFA, CEFA, Dipl. Kaufm.

 We constructed a discriminant function that includes an ESG factor. It has a higher explanatory power in discriminating between industrial companies’ good and poor credit qualities than similar models that don’t include an ESG factor.

While empirical credit quality research has focused on “classic” credit ratios in the past, we find that adding at least one ESG factor improves quantitative credit-rating models.

This study is designed first to define a corporate universe, second to preselect relevant credit ratios and ESG factors, third to generate and analyze the database, fourth to calculate and discuss the discriminant function, and finally to assess the final model using specific in- and out-of-sample case studies.


Green Bonds: The Shape of Green Fixed-Income Investing to Come

Kim Schumacher, PhD, Guest Editor of JEI Vol 10, no 1 (2020)

So far, 2020 has proven to be a year of profound global turmoil, affecting all aspects of human life. From the socio-economic Covid-19 disruptions and protests against racial inequality to the continuously escalating climate crisis, humanity is at a veritable crossroads in terms of addressing and remedying past, present, and future risks to society and the planet. With the Paris Climate Agreement and the UN Sustainable Development Goals (SDGs), the global community has established ambitious yet critical targets to safeguard and improve the lives of present and future generations. In order to achieve these goals, numerous stakeholders, including law- and policy-makers, industry and civil society representatives, and academia, have been developing and conceptualizing appropriate tools and strategies.

Fixed income securities that integrate environmental, social, and governance (ESG) factors have become a crucial component of most sustainable investment and climate-related risk management strategies. Global green bond issuance has grown from USD 87.2 billion in 2016 to USD 257.7 billion in 2019. By providing the most comprehensive overview to date of all green bond variants, this 2020 issue of the Journal of Environmental Investing explores the core attributes of green bonds, such as their potential returns from financial and nonfinancial angles, taxonomical and underlying conceptual considerations, and academic assessments of the market as a whole. The authors of this issue provide contemporary insights and an up-to-date snapshot of the evolving characteristics of climate and green bonds.


Exchange-Traded Green Bonds

by Szilárd Erhart, Unit ENV F.1 – SDGs, Green Finance & Economic Analysis, Directorate-General for Environment


The Proof in the Pipeline: Fossil Fuels and Social Inequality

Arina Abbott oversees marketing at Green Alpha Advisors, an asset manager that invests public equities in the innovation-driven, sustainable economy.

EOS Climate: Curbing Carbon Emissions From HFCs

EOS Climate has just completed the first project to generate verified emission reductions (VERs), also known as carbon credits, from the reclamation and re-use of hyrdofluorocarbon (HFC) refrigerants.


Angelo Calvello on “Divestment as Abdication” in CIO Magazine

JEI Publisher Angelo Calvello explores “Divestment as Abdication” in his December column for Chief Investment Officer (CIO) magazine. Homing in on the unique nature of the fossil fuel divestment campaign, he advises CIOs to embrace divestment, but as a call to action: identify, measure, and manage exposure to the risks of carbon and climate with existing analytical tools.


Not only not investing in lowering emissions, but this investment is actually contributing to increasing emissions.…

About 3 hours ago from The JEI's Twitter via Twitter Web App

The Journal of Environmental Investing (JEI) is an inter-disciplinary, peer-reviewed, open-access journal that publishes original research in all areas at the intersection of the environment and investing. The JEI presents research papers, commentaries, case studies, and reviews on manifold topics. It focuses on the critical issues of creating, deploying, financing, structuring, and managing successful market-based solutions to the environmental challenges of today.

The JEI’s mission is to facilitate the flow of capital to solutions to problems arising from natural resource depletion, pollution, demographic changes, sustainability, and climate change. To fulfill this mission, the JEI carries high-impact research articles as well as thoughtful analyses that make environmental solutions more attainable by articulating their investment risks and opportunities. The JEI serves as a platform to bring together disciplines ranging from science to policy to finance, so that such challenges can be pragmatically addressed from academic and applied perspectives.

At the heart of the Journal of Environmental Investing is free access to unbiased and objective information about environmental investing. It is written for and by asset owners and managers, investment professionals, scientists, economists, policy makers and regulators, technologists, academics, investment professionals, and other stakeholders interested in the search for real solutions to the sobering state of global environmental affairs.

Sponsorship of the Journal of Environmental Investing
provided by Verger Capital Management LLC.