US ESG Market Is Dominated by Foreign Companies More Than Ever

The US market for sustainable bonds is being crowded by foreign companies this year more than ever, as political backlash and negligible pricing benefits continue to keep American companies on the sidelines.

Foreign firms account for 89% of green, social, sustainability and sustainability-linked corporate-securities sales in dollars this year, up from 76% through the first half of last year and just 30% in 2020, BloombergNEF data through the end of June shows.

Companies including Toyota Motor Corp., Deutsche Bank and the Industrial & Commercial Bank of China Ltd. have tapped the US market with labeled debt, while many US banks ...