New Waves: The ESG Megatrend Meets Green Bonds
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New Waves: The ESG Megatrend Meets Green Bonds

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Rise of Responsible ESG Investing

New Waves: The ESG Megatrend Meets Green Bonds

It’s clear that sustainable investing has been thrown into the limelight.

Increasingly, investors are seeing both the financial and social imperative for sustainable investing. In particular, the rapid growth of green bonds—a fixed income investment that is designed to raise funds for the climate or environment—is booming.

The above infographic from Raconteur navigates the growing green bond market against the backdrop of the broader ESG (environmental, social, and governance) investing shift.

Gathering Steam

By the end of 2020, $45 trillion in assets will adhere to sustainable practices, including ESG principles.

Despite the loss of confidence from COVID-19, investors flocked to sustainable-focused funds.In fact, global fund flows hit record levels for Q2 of 2020—surpassing $71 billion.

The fund flows are not without financial warrant. Between April 2015 and April 2019, average returns of socially responsible investments (SRI) outperformed their non-SRI peers. At the same time, 94% of sustainable indices realized stronger returns than their benchmarks between January and March 2020.

The accelerating demand for sustainable investments may seem like old news, but green bonds offer a new avenue.

What Are Green Bonds?

Green bonds raise money for climate and environmental projects, and are issued by governments, corporations, and financial institutions.

Multilateral development banks, which include the European Investment Bank and the World Bank, initially brought them to market in 2007, though they had a slow start. However, in 2019, new issues of green bonds topped $258 billion worldwide—jumping 51% in one year.

Across the green bond market there is a broad spectrum of different debt instruments. These include private placements, covered bonds, and green loans.

Green private placements occur when the sale of bonds are made to private investors, rather than through public offerings. Green covered bonds, on the other hand, are bonds that are backed by a group of assets that are sustainably-focused. Green loans are forms of loans that are meant to finance green projects.

Overall, green bonds can be diversified across a number of different sectors.

The Top Purposes for Green Bonds

What are the top sectors for green bond issuance?

Category20152019
Alternative energy$30.4B$143.8B
Green building$10.7B$63.5B
Sustainable transport$3.7B$58.7B
Energy efficiency$9.5B$47.6B
Sustainable water$3.1B$23.8B
Pollution prevention$1.4B$18.1B
Climate adaptation$1.8B$15.0B
Sustainable forestry/agriculture$1.1B$11.3B

Source: MSCI

Alternative energy, accounting for over $143 billion in green bonds, outpaces all other sectors by a wide margin. Within four years, renewable energy bond issuance has more than quadrupled.

Meanwhile, green building bonds are garnering attention. These instruments finance the construction of energy efficient buildings. Within the industry, a notable green building certification system is the LEED standard, also internationally recognized. Often, real estate investment trusts (REITs) are involved in issuing green building bonds.

Interestingly, Big Tech is also becoming more active within the green bond landscape. Google’s parent company, Alphabet, has issued a record $5.8 billion in corporate sustainability bonds to fund everything from energy efficiency projects to affordable housing.

The Top 10 Countries for Green Bonds

On a country-by-country level, green bonds are most common in the U.S., China, and France.

RankCountryGreen Bond Issuance2018-2019 Change (Amount)
1🇺🇸U.S.$50.6B44%
2🇨🇳China$30.1B1%
3🇫🇷France$29.5B113%
4🇩🇪Germany$18.7B144%
5🇳🇱Netherlands$15.1B105%
6🇸🇪Sweden$10.3B66%
7🇯🇵Japan$7.2B73%
8🇨🇦Canada$7B63%
9🇮🇹Italy$6.8B128%
10🇪🇸Spain$6.5B3%
Top 10 Total$181.8B49%

Source: Climate Bonds Initiative

Germany issued its first multi-billion dollar government green bonds in just 2019. One catalyst behind this was the European Central Bank’s announcement that the environment would become a “mission critical” priority going forward.

This may contribute to the fact that both Germany and France saw the biggest change between 2018 and 2019.

Opening the Floodgates

As sustainable investing becomes front and center on the global agenda, questions about its impact on returns have arisen.

During times of both extreme exuberance and market crisis, companies with higher sustainability ratings have outperformed their respective benchmark. However, there is still a long way to go. Even with the record issuance of green bonds in 2019, they make up just 3% of all global bonds issued.

As demand for sustainable investments quickly grows, could it spell a watershed decade ahead for green bonds?

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The World’s 25 Largest Lakes, Side by Side

This unique map graphic uses the Great Lakes region as a point of comparison for the top 25 largest lakes in the world.

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The World’s 25 Largest Lakes, Side by Side

In many parts of the world, you don’t have to look very far to find a lake.

According to satellite data, there are roughly 100 million lakes larger than one hectare (2.47 acres) to be found globally. The largest lakes, which rival the size of entire nations, are more of a rarity.

One might expect the world’s largest lakes to be very alike, but from depth to saline content, their properties can be quite different. As well, the ranking of the world’s largest lakes is far from static, as human activity can turn a massive body of water into a desert within a single generation.

Today’s graphic – created using the fantastic online tool, Slap It On A Map! – uses the Great Lakes region as a point of comparison for the largest 25 lakes, by area. This is particularly useful in comparing the scale of lakes that are located in disparate parts of the globe.

The Greatest Lakes

The largest lake in the world by a long shot is the Caspian Sea – a name that hints at a past when it was contiguous with the ocean around 11 million years ago. This massive saline lake, which is nearly the same size as Japan, borders five countries: Kazakhstan, Russia, Turkmenistan, Azerbaijan, and Iran. An estimated 48 billion barrels of oil lay beneath the surface of the basin.

The five Great Lakes, which run along the Canada–U.S. border, form one of the largest collections of fresh water on Earth. This interconnected series of lakes represents around 20% of the world’s fresh water and the region supports over 100 million people, roughly equal to one-third of the Canada–U.S. population.

Amazingly, a single lake holds as much fresh water as all the Great Lakes combined – Lake Baikal. This rift lake in Siberia has a maximum depth of 5,371ft (1,637m). For comparison, the largest of the Great Lakes (Lake Superior) is only 25% as deep, with a maximum depth of 1,333ft (406m). Lake Baikal is unique in a number of other ways too. It is the world’s oldest, coldest lake, and around 80% of its animal species are endemic (not found anywhere else).

Here’s a full run-down of the top 25 lakes by area:

RankLake NameSurface AreaTypeCountries on shoreline
1Caspian Sea143,000 sq mi
(371,000km²)
Saline🇰🇿 Kazakhstan
🇷🇺 Russia
🇹🇲 Turkmenistan
🇦🇿 Azerbaijan
🇮🇷 Iran
2Superior31,700 sq mi
(82,100km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
3Victoria26,590 sq mi
(68,870km²)
Freshwater🇺🇬 Uganda
🇰🇪 Kenya
🇹🇿 Tanzania
4Huron23,000 sq mi
(59,600km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
5Michigan22,000 sq mi
(58,000km²)
Freshwater🇺🇸 U.S.
6Tanganyika12,600 sq mi
(32,600km²)
Freshwater🇧🇮 Burundi
🇹🇿 Tanzania
🇿🇲 Zambia
🇨🇩 D.R.C.
7Baikal12,200 sq mi
(31,500km²)
Freshwater🇷🇺 Russia
8Great Bear Lake12,000 sq mi
(31,000km²)
Freshwater🇨🇦 Canada
9Malawi11,400 sq mi
(29,500km²)
Freshwater🇲🇼 Malawi
🇲🇿 Mozambique
🇹🇿 Tanzania
10Great Slave Lake10,000 sq mi
(27,000km²)
Freshwater🇨🇦 Canada
11Erie9,900 sq mi
(25,700km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
12Winnipeg9,465 sq mi
(24,514km²)
Freshwater🇨🇦 Canada
13Ontario7,320 sq mi
(18,960km²)
Freshwater🇨🇦 Canada
🇺🇸 U.S.
14Ladoga7,000 sq mi
(18,130km²)
Freshwater🇷🇺 Russia
15Balkhash6,300 sq mi
(16,400km²)
Saline🇰🇿 Kazakhstan
16Vostok4,800 sq mi
(12,500km²)
Freshwater🇦🇶 Antarctica
17Onega3,700 sq mi
(9,700km²)
Freshwater🇷🇺 Russia
18Titicaca3,232 sq mi
(8,372km²)
Freshwater🇧🇴 Bolivia
🇵🇪 Peru
19Nicaragua3,191 sq mi
(8,264km²)
Freshwater🇳🇮 Nicaragua
20Athabasca3,030 sq mi
(7,850km²)
Freshwater🇨🇦 Canada
21Taymyr2,700 sq mi
(6,990km²)
Freshwater🇷🇺 Russia
22Turkana2,473 sq mi
(6,405km²)
Saline🇰🇪 Kenya
🇪🇹 Ethiopia
23Reindeer Lake2,440 sq mi
(6,330km²)
Freshwater🇨🇦 Canada
24Issyk-Kul2,400 sq mi
(6,200km²)
Saline🇰🇬 Kyrgyzstan
25Urmia2,317 sq mi
(6,001km²)
Saline🇮🇷 Iran

The Great Lakes World Tour

For people living in Canada and the U.S., the shape and relative size of the Great Lakes system may be quite familiar. This makes the Great Lakes a fantastic point of comparison to help put the size of other world locations into perspective. To this end, we begin our Great Lakes World Tour.

First, the image below shows how the Great Lakes system would look if it was located in India.

great lakes compared with india

Distortions on commonly used maps can downplay the size of India compared to more northern nations. This view of the Great Lakes can help put India’s true size into perspective.

Next, we look at the Great Lakes overlaid within Central Europe.

great lakes compared with europe

In the context of Europe, the lakes are so large that they extend from the Netherlands over to Slovakia. Lake Superior’s surface area of 31,700 mi2 (82,000 km2), is similar in size to Austria. Here’s are the five Great Lakes and European countries of equivalent size:

Great LakesSurface AreaEquivalent CountryArea
Lake Superior82,000 km2 (31,700 sq mi)🇦🇹 Austria83,879 km2 (32,386 sq mi)
Lake Huron60,000 km2 (23,000 sq mi)🇱🇻 Latvia64,589 km2 (24,938 sq mi)
Lake Michigan58,000 km2 (22,300 sq mi)🇭🇷 Croatia56,594 km2 (21,851 sq mi)
Lake Erie25,700 km2 (9,910 sq mi)🇲🇰 North Macedonia25,713 km2 (9,928 sq mi)
Lake Ontario19,000 km2 (7,340 sq mi)🇸🇮 Slovenia20,271 km2 (7,827 sq mi)

Lastly, here is a look at the Great Lakes in Southern Australia. Australia is the world’s 6th largest country, so the Great Lakes only occupy one corner of its land mass.

great lakes compared with Australia

Australia’s lack of glacial history means that there are few permanent freshwater lakes in the country. Many of the country’s largest lakes only fill up during periods of excessive rainfall.

Shrinking out of the rankings

Not far from the world’s largest lake, straddling the border between Kazakhstan and Uzbekistan, lay the sand dunes of the Aralkum Desert. In the not so distant past, this harsh environment was actually the bed of one of the largest lakes in the world – the Aral Sea.

Aral Sea receding 1960 2020

For reasons both climatic and anthropogenic, the Aral Sea began receding in the 1960s. This dramatic change in surface area took the Aral Sea from the fourth largest lake on Earth to not even ranking in the top 50. Researchers note that the size of the lake has fluctuated a lot over history, but through the lens of modern history these recent changes happened rapidly, leaving local economies devastated and former shoreside towns landlocked.

Lake Chad, in Saharan Africa, and Lake Urmia, in Iran, both face similar challenges, shrinking dramatically in recent decades.

How we work to reverse damage and avoid ecosystem collapse in vulnerable lakes will have a big influence on how the top 25 list may look in future years.

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All the Biomass of Earth, in One Graphic

Our planet supports nearly 8.7 million species. We break down the total composition of the living world in terms of its biomass.

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All the Biomass of Earth, in One Graphic

Our planet supports approximately 8.7 million species, of which over a quarter live in water.

But humans can have a hard time comprehending numbers this big, so it can be difficult to really appreciate the breadth of this incredible diversity of life on Earth.

In order to fully grasp this scale, we draw from research by Bar-On et al. to break down the total composition of the living world, in terms of its biomass, and where we fit into this picture.

Why Carbon?

A “carbon-based life form” might sound like something out of science fiction, but that’s what we and all other living things are.

Carbon is used in complex molecules and compounds—making it an essential part of our biology. That’s why biomass, or the mass of organisms, is typically measured in terms of carbon makeup.

In our visualization, one cube represents 1 million metric tons of carbon, and every thousand of these cubes is equal to 1 Gigaton (Gt C).

Here’s how the numbers stack up in terms of biomass of life on Earth:

TaxonMass (Gt C)% of total
Plants45082.4%
Bacteria7012.8%
Fungi122.2%
Archaea71.3%
Protists40.70%
Animals2.5890.47%
Viruses0.20.04%
Total545.8100.0%

Plants make up the overwhelming majority of biomass on Earth. There are 320,000 species of plants, and their vital photosynthetic processes keep entire ecosystems from falling apart.

Fungi is the third most abundant type of life—and although 148,000 species of fungi have been identified by scientists, it’s estimated there may be millions more.

Animals: A Drop in the Biomass Ocean

Although animals make up only 0.47% of all biomass, there are many sub-categories within them that are worth exploring further.

TaxonMass (Gt C)% of Animal Biomass
Arthropods (Marine)1.038.6%
Fish0.727.0%
Arthropods (Terrestrial)0.27.7%
Annelids0.27.7%
Mollusks0.27.7%
Livestock0.13.9%
Cnidarians0.13.9%
Humans0.062.3%
Nematodes0.020.8%
Wild mammals0.0070.3%
Wild birds0.0020.1%
Animals (Total)2.589100.0%

Arthropods

Arthropods are the largest group of invertebrates, and include up to 10 million species across insects, arachnids, and crustaceans.

Chordates

The category of chordates includes wild mammals, wild birds, livestock, humans, and fish. Across 65,000 living species in total, nearly half are bony fish like piranhas, salmon, or seahorses.

Surprisingly, humans contribute a relatively small mass compared to the rest of the Animal Kingdom. People make up only 0.01% of all the biomass on the planet.

Annelids, Mollusks, Cnidarians, and Nematodes

Annelids are segmented worms like earthworms or leeches, with over 22,000 living species on this planet. After arthropods, mollusks are the second-largest group of invertebrates with over 85,000 living species. Of these, 80% are snails and slugs.

Cnidarians are a taxon of aquatic invertebrates covering 11,000 species across various marine environments. These include jellyfish, sea anemone, and even corals.

Nematodes are commonly referred to as roundworms. These sturdy critters have successfully adapted to virtually every kind of ecosystem, from polar regions to oceanic trenches. They’ve even survived traveling into space and back.

The Microscopic Rest

Beyond these animals, plants, and fungi, there are an estimated trillion species of microbes invisible to the naked eye—and we’ve probably only discovered 0.001% of them so far.

Bacteria

Bacteria were one of the first life forms to appear on Earth, and classified as prokaryotes (nucleus-less). Today, they’re the second-largest composition of biomass behind plants. Perhaps this is because these organisms can be found living literally everywhere—from your gut to deep in the Earth’s crust.

Researchers at the University of Georgia estimate that there are 5 nonillion bacteria on the planet—that’s a five with 30 zeros after it.

Protists and Archaea

Protists are mostly unicellular, but are more complex than bacteria as they contain a nucleus. They’re also essential components of the food chain.

Archaea are single-celled microorganisms that are similar to bacteria but differ in compositions. They thrive in extreme environments too, from high temperatures above 100°C (212°F) in geysers to extremely saline, acidic, or alkaline conditions.

Viruses

Viruses are the most fascinating category of biomass. They have been described as “organisms at the edge of life,” as they are not technically living things. They’re much smaller than bacteria—however, as the COVID-19 pandemic has shown, their microscopic effects cannot be understated.

The Earth’s Biomass, Under Threat

Human activities are having an ongoing impact on Earth’s biomass.

For example, we’ve lost significant forest cover in the past decades, to make room for agricultural land use and livestock production. One result of this is that biodiversity in virtually every region is on the decline.

Will we be able to reverse this trajectory and preserve the diversity of all the biomass on Earth, before it’s too late?

Editor’s note: This visualization was inspired by the work of Javier Zarracina for Vox from a few years ago. Our aim with the above piece was to recognize that while great communication needs no reinvention, it can be enhanced and reimagined to increase editorial impact and help spread knowledge to an even greater share of the population.

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