Abstract
This study addresses the absence of standardized definitions and the concerns of greenwashing. It explores investor responses to green bond announcements and issuer’s environmental performance. Utilizing data from 2013 to 2022, this study finds that investors differentiate between bond labels. However, the results highlight possible market inefficiencies and the need for further research. Furthermore, the results show that issuers generally elicit a relative decrease in their greenhouse gas intensities. Nevertheless, this study finds no connection between the environmental performance of issuers and green bond labels.