What are green and other related ESG corporate bonds? Green bonds, a prominent term in finance, have gained a lot of attention recently. Part of the broader Environmental, Social, and Governance ( ESG ) category, these instruments offer significant advantages over conventional bonds and play a key role in modern finance. Like conventional bonds, ESG bonds involve loans from investors to organizations. These loans finance projects and investors get their principal back with interest. ESG bonds include green, social, climate and sustainability types. Green bonds issued by public or private entities finance environmental or climate change projects. They represent the environmental aspect of ESG. Projects commonly financed by green bonds include energy efficiency, renewable energy, pollution control, natural resource management, clean transportation, water management, and green buildings. Social corporate bonds, on the other hand, finance projects improving social aspects, such as fighting discrimination or promoting equality. Other ESG bonds, such as climate and sustainability bonds, finance climate mitigation projects or combine green and social initiatives. ( Nemanja Sladaković, Bojan Tutić, lexology.com)