What Is Green?

Environmental, social, and governance (ESG) investing has become popular in recent years as investors have become interested in social concerns. And although ESG investing often relates to stocks, green bonds have also become more prevalent. Green bonds are intended to support sustainability and climate-related projects such as wind turbines or solar panels. Generally, these bonds are approved as green bonds by an outside agency such as the International Capital Markets Association. So what exactly is green? As a recent Verizon green bond issue shows, the definition can be somewhat murky. Verizon's $1 billion bond issue was classified as a green bond, with any green investments from 2017 to 2029 counting toward the target. What is interesting is that Verizon can count deployment of 5G technology and/or legacy network technology replacement toward green investing. Obviously, Verizon was planning on the 5G upgrade, but now it is a green upgrade.