The impact of ESG disclosure attributes on credit risk
| ESG disclosure attribute | Researchers | Year | Research results |
|---|---|---|---|
| Specificity of disclosure | Sangiorgi and Schopohl | 2021 | A survey of EU asset managers showed that 79% would not make a purchase if the Use of Proceeds disclosure was unclear. Weak post-issuance reporting triggers selling and engagement |
| Tone of ESG communications | Naumer and Yurtoglu | 2022 | For large EU/US firms, a positive tone in ESG news is associated with a 4% lower CDS, while a negative tone is associated with a 6% higher CDS |
| Sharma and Sharma | 2025 | Using more positive or “greener” language in the prospectus tightens the issue spreads | |
| Third-party validation and credibility | Xu et al. | 2022 | Greenwashing risk increases credit spreads, but third-party certification mitigates the penalty |
| Allman and Lock | 2024 | External reviews lower yields when the information environment and legal origin support them. Reputable reviewers amplify the greenium | |
| Intonti, De Leonardis and Bussoli | 2025 | ICMA SBP compliance and SPOs are associated with lower social premiums (narrower asset-swap spreads) | |
| Readability of prospectuses and reports | Sharma and Sharma | 2025 | The readability of a prospectus is inversely related to credit spreads at issuance. Using greener language and a positive tone can also reduce spreads |
| Shimamura, Tanaka and Managi | 2025 | Report readability that is more context-dependent correlates with higher ESG scores and lower rater disagreement |
| Researchers | Year | Research results | |
|---|---|---|---|
| Specificity of disclosure | Sangiorgi and Schopohl | 2021 | A survey of |
| Tone of | Naumer and Yurtoglu | 2022 | For large EU/ |
| Sharma and Sharma | 2025 | Using more positive or “greener” language in the prospectus tightens the issue spreads | |
| Third-party validation and credibility | Xu | 2022 | Greenwashing risk increases credit spreads, but third-party certification mitigates the penalty |
| Allman and Lock | 2024 | External reviews lower yields when the information environment and legal origin support them. Reputable reviewers amplify the greenium | |
| Intonti, De Leonardis and Bussoli | 2025 | ||
| Readability of prospectuses and reports | Sharma and Sharma | 2025 | The readability of a prospectus is inversely related to credit spreads at issuance. Using greener language and a positive tone can also reduce spreads |
| Shimamura, Tanaka and Managi | 2025 | Report readability that is more context-dependent correlates with higher |
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