Call to Reform Green Bond Lending Gains Momentum
(Cardiff, 3 July 2025) Global Principles for Sustainable Securities Lending CIC (Global PSSL CIC) has released a call for action paper titled: “Green Bonds Under Opaque Loans: A Call to Pause and Reform Green Bond Lending Practices through Transparent and Fintech-Enabled Solutions” [available here].
This paper identifies a critical transparency gap in current securities lending, repo, and derivatives frameworks — where green-labelled bonds may be used in ways that undermine their original environmental purpose. The paper calls on investors, policymakers, and regulators to introduce greater transparency and stewardship in the post-issuance treatment of green bonds.
Crucially, the paper also proposes a solution: a set of targeted metrics designed to help organisations across the green bond value chain close transparency gaps, build investor trust, and strengthen the integrity of sustainable finance. These metrics are set to be integrated into the upcoming ABC Score™ framework. Members of Global PSSL’s Asset Owners Council will support testing of these metrics in the second half of 2025.
Radek Stech, CEO of Global PSSL & Founder of ABC Score™ said: “I would like to thank Nest for giving me the impetus to bring this work forward at a critical moment for the market. This paper offers a constructive contribution to an evolving conversation. As green bonds mature, it is important to ensure that post-issuance practices — including lending and repo — align with their original sustainability commitments.”
Diandra Soobiah, Chair of the Asset Owners Council and Director of Responsible Investment at Nest said: “Nest commends the Global PSSL for shining a spotlight on the role of green bonds in the securities lending value chain. We welcome the report’s recommendations and are pleased to support efforts to improve transparency and understanding of how securities lending might impact the integrity of green bonds. We look forward to helping test the proposed metrics as part of this important work.”
Sarah Wilson, CEO at Minerva Analytics said: “Data integrity is a critical ingredient for building market trust. Asset owners are clear that there is no place for greenwashing in any part of their responsible investment strategies. The ABC Score™ framework is a timely market-driven response to supporting a high integrity green bonds market.”
Michael Riggs, Non-Executive Director at the Global PSSL Secretariat said: “I see the ABC Score™ as a game changer, cutting through the greenwashing that cloaks bad investment practices from public view. The ABC Score™ will give greater transparency to the market.”
-END
Contact Information regarding this press release:
Dr Radek Stech: radek.stech@gpssl.org
Nest: https://www.nestpensions.org.uk/schemeweb/nest/nestcorporation.html
About Global PSSL
Global Principles for Sustainable Securities Lending (Global PSSL) is the fundamental global mechanism for aligning securities lending with transparency and sustainable finance. It has been co-created by Dr Radek Stech, prominent asset owners, asset managers, sovereign wealth funds, banks, hedge funds other stakeholders committed to positive change since 2018. Global PSSL has received significant funding from the Economic and Social Research Council (ESRC), part of UK Research and Innovation, through the Sustainable Finance – Law – Stakeholders (SFLS) Network at Exeter Law School in addition to some financial assistance from some industry stakeholders. The ESRC grant request was designed based on earlier engagement with stakeholders shaping values-based banking, green bonds and sustainable project finance as well as continuous contact, research and discussions with staff from the World Bank (the official partner on the grant). In order to preserve its impartiality, the Global PSSL framework is based within its own independent community interest company.
