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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

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Measuring Social Bond Impact

Measuring Social Bond Impact

Keith Mullin

35 years: Capital markets editorial

Within the fourth video in this series, Keith discusses the key challenges with measuring the impact of social bonds, such as the long time lags associated with impacts of social projects and suggests investors have a role to play in offsetting this to an extent. This may come in the form of active investor engagement.

Within the fourth video in this series, Keith discusses the key challenges with measuring the impact of social bonds, such as the long time lags associated with impacts of social projects and suggests investors have a role to play in offsetting this to an extent. This may come in the form of active investor engagement.

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Measuring Social Bond Impact

3 mins 1 sec

Key learning objectives:

  • Outline the challenges of social impact measurement

  • Identify the role investors can play

Overview:

Measuring impact is a challenge for the Social Bond market. The Social Bond Principles are a valuable starting point for defining the product, but opening on how social a Social Bond is beyond the SBP’s remit. Green bonds that finance environmental projects can fall back on carbon emissions reductions over the life of a bond. For social bonds, it’s much more difficult to calculate the impact of a bond on poverty reduction or job-creation since there are so many factors at play.

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Summary

What are the challenges of measuring social impact?

  • Green bonds that finance environmental projects can fall back on carbon emissions reductions. It’s much more difficult to calculate the impact of a social bond on, say, poverty reduction or job-creation since there are so many factors at play
  • Issuers list expected social impact benefits before a bond has been issued so impact can only ever be the result of modelling, with a lot of uncertainty and moving parts
  • Social impact can take a long time to emerge; poverty-reduction doesn’t emerge overnight
  • Investors need to take on trust that social projects will factor in all reasonable elements to hit targets and be clear that it may be impossible to truly determine impact
  • The best social bond issuers can do is be transparent about the projects they’re financing, which target populations they’re reaching, and how many people are being reached

 What role can investors play?

A critical part of the story is active investor engagement. Driving a positive social or environmental end-game and adding value is better achieved through active engagement with management than through social screening. To avoid cries of social-washing, investors should demand clear pathways i.e.:

  • Impact assessments that define exactly what issuers want to achieve
  • The metrics issuers have aligned against their bonds
  • A formal commitment to create detailed impact reporting throughout the life of the bond.
 

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Keith Mullin

Keith Mullin

Keith is the founder and director of KM Capital Markets, a media and thought-leadership consultancy. He spent the past 35 years working in specialist capital markets media and has had a ring-side seat at all of the major market events. Prior to setting up KM Capital Markets in 2017, Keith worked at Thomson Reuters.

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