Financial tools for the implementation of environmental projects

National University of Water and Environmental Engineering, 11 Soborna St., Rivne, 33028, Ukraine

^* Corresponding author: o.o.osadcha@nuwm.edu.ua

Abstract

The article examines the features of responsible investing, in particular, and investigates ESG bonds as a widespread instruments of financing projects in sustainable development. In order to form a methodical support for the implementation of responsible investment and the use of green financial instruments, the authors have summarized the relevant projects and programs of international organizations. The main types of investment strategies used by investors in the market of responsible investing are presented. The following ESG bond types are green, social, sustainable and sustainability-related. The financial toolkit of responsible investing has been studied. It is substantiated that shares and debt securities are the main instruments of responsible investment. It was established that business entities that attract ESG bonds use two main credit instruments: bilateral loans and syndicated loans. Key components of sustainable lending are identified and characterized: consistency with the borrower’s policy on compliance with corporate social responsibility and achievement of predetermined indicators of the effectiveness of projects in the field of sustainable development; establishment of the enterprise’s achievement of sustainable development goals; publication of financial statements by the borrower and its audit.