Green Bond Alignment, Certification and Corporate Credit Risk: Evidence from Global Issuers

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Abstract
This study examines which bond-level, issuer-level, and institutional characteristics are associated with external recognition or alignment in the global corporate green bond market and whether these associations differ between Climate Bonds Initiative (CBI) alignment and formal CBI certification. The database contains 6009 green bond issuances by 822 corporate issuers between 2016 and 2025. The main complete-case analysis uses 4875 bonds issued by 682 firms and estimates a multilevel logistic model with issuer random intercepts, Fitch-rating, sector, and issuance-year controls. Larger issuance amounts are positively associated with external recognition or alignment across every specification. Issuance in a developed market and average operating margin, which is treated as an exploratory covariate, are also positively associated with the broad outcome, whereas issuer size is negatively associated; however, these relationships are more sensitive to outcome definition, temporal measurement, or estimator choice. Financial leverage and credit-rating categories show no consistent association. Separate aligned-versus-self-labelled, certified-versus-aligned, and multilevel multinomial analyses reveal substantial heterogeneity between CBI alignment and formal certification, confirming that the two categories should not be interpreted as equivalent verification mechanisms. These findings identify transaction scale as the most stable correlate of external recognition or alignment and show that issuance-market context and issuer characteristics operate differently across recognition categories.
Funding Information
  • Conselho Nacional de Desenvolvimento Científico e Tecnológico (311968/2022-8)
  • Conselho Nacional de Desenvolvimento Científico e Tecnológico (409740/2025-0)
  • Conselho Nacional de Desenvolvimento Científico e Tecnológico (314539/2026-3)

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