Amundi hits €5b in green bonds AUM as Euro-issuance dominates

European issuance of green bonds has dominated the green, social and sustainability (GSS) bond market in 2024, with Amundi recording over €5 billion in green bond assets under management (AUM) according to the manager’s latest impact report.

The Amundi Annual Impact Report 2024 confirmed the green bond market has pivoted away from being typically considered a “niche” opportunity and has instead cemented itself as “well-established and mature”, now holding a 60 per cent market share of the total GSS bond market.

New green bond issuance in 2024 totalled €442 billion, taking total market value to €2,221 billion mostly shared between financial institution, agency, utility and sovereign issuers.

Europe maintained its lead as the top green bond issuer (55 per cent) in 2024, as Japan climbed the rankings and US companies slipped, with Germany issuing €49 billion, France at €41 billion, Netherlands at €21 billion, Italy at €17 billion and Spain at €12 billion.

“The Green Bond Market has experienced significant growth over the past fifteen years, reaching €2,221 billion with new green bond issuance amounted to €442 billion in 2024,” Alban de Faÿ, Head of Sustainable Responsible Investment processes for Fixed Income at Amundi, said.

“It has now become well-established, mature, and offers a wide range of opportunities we are committed to explore and invest in, on behalf of our clients.

“With our green bonds funds, we aim to finance the energy transition by investing in green bonds with positive and measurable impact on the environment and delivering returns throughout the different economic cycles.

“With this report, we aim to provide transparency regarding these funds, illustrating what we finance and the environmental benefits achieved.

“Our impact investing philosophy is founded on three core pillars, which form the basis of our green bond strategies:

1. Intentionality: investing with a clear environmental objective;
2. Measurability: tracking avoided CO₂ emissions; and
3. Additionality: increasing the net positive impact generated by the project or issuer’s activities.”

According to the report, an average of 322 tonnes of CO₂ emissions were avoided over the 12 months to 30 June 2024 for every €1 million invested in its three green bonds: the Amundi Responsible Investing (ARI) Impact Green Bond (200 tonnes of CO₂ avoided), the Amundi Funds Impact Euro Corporate Short Term Green Bond (359 tonnes of CO₂ avoided), and the Amundi Impact Ultra Short Term Green Bond (408 tonnes of CO₂ avoided).

“Reducing greenhouse gas emissions must remain the priority in the fight against global warming. Green bonds contribute to the trajectory towards a carbon-neutral economy by financing environmental projects. These projects include renewable energy, energy efficiency, sustainable waste and water management, sustainable land use, clean transport and climate change adaptation,” the report said.

“One of the key advantages of green bonds is their transparency features. Investors can see how the funds raised are being utilized, which specific green projects are being supported, and estimate the environmental benefits associated with these projects.”