The potential benefits of distributed ledger technology (DLT) are enormous and could be the game-changer that the ESG bond market needs to reach the maturity levels required for such a substantial asset class. DLT has the power to address the challenges of greenwashing, enhance transparency in the use of proceeds reporting, and strengthen accountability.
The hurdles facing green bond issuers are mounting. As more ESG-related bonds flood the market, investors will become more exacting in their expectations for sustainability goals.