The question in 9.2 is not relevant due to our response to question 9.1. However, even as a non-investor in green bonds we support the development of the green bond market.
We continue to undertake substantial work with policy-makers, other investors and government agencies to encourage growth of the market. Sufficient size and liquidity is necessary for a large global asset manager such as LGIM. As part of this outreach we have been calling for additional transparency and moving forward we will be considering how we broach this with issuers. More generally, we believe that there needs to be an appropriate balance between having the perfect quality of green bonds, in terms of project funding, and building size in the market place to encourage scale.
As part of our regular dialogue with the Bank of England, we participated in a meeting early in 2018, with part of the discussion providing us with an opportunity to exchange views on the green bond market.
On a wider market level, LGIM’s CEO Mark Zinkula, and Head of Sustainability and Responsible Investment Strategy, Meryam Omi, have been selected by the UK Government to be members of the newly created Green Finance Taskforce. The Taskforce is co-hosted by the Department for Business, Energy and Industrial Strategy (BEIS) and HM Treasury. It brings together experts from the financial and sustainability sectors and aims to accelerate the growth of green finance and help the UK Government deliver the investment required to meet the UK’s carbon reduction targets. As part of our work with the Task Force, we have supported ideas relating to the promotion of green bonds issued by the UK government and cities and compulsory green revenue reporting for listed companies – which would help increase transparency in the green bonds space.