Due to the euro crisis, many countries have lost their status as risk-free assets. This has demonstrated the importance of integrating sustainability criteria into investment decisions when investing in government bonds. As a matter of fact, governmental debt remains a major investment tool, currently representing nearly €58 trillion, and may considerably leverage the financing of the energy transition.
In a context of a globalising economy facing major challenges such as climate change, the scarcity of natural resources, the growth of public debt and the demographic challenge, it seems obvious that states, as major actors in the economy, have a key role to play.
In this fourth episode of our Sustainability Knowledge Centre, we focus on government bonds and the different approaches to assess the sustainability of countries.
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