In the last 10 years, the global green bond market has reached an estimated value of USD 6.8 trillion. However, credibility concerns persist due to greenwashing risks and issues regarding the reporting system. The current measurement, reporting, and verification systems (MRV) have high uncertainty levels of 10–30%, and so they contribute to information asymmetries and fuel investor skepticism when allocating capital to green bond instruments. The scope of this study is to develop an integrated management approach that links air quality and greenhouse gas monitoring with financial incentives throughout the lifecycle of green bonds. The central contribution is a four-phase lifecycle model covering issuance, allocation, monitoring, and impact reporting, which systematically identifies where greenwashing risks and verification gaps arise across the investment cycle. Methodologically, the study combines qualitative content analysis, a novel Disclosure Quality Score (DQS) instrument, based on the Regulation (EU) 2023/2631, four documentary case studies, and an advanced verification framework. The content analysis shows that regulatory and market-performance studies dominate the literature, while integrated lifecycle verification frameworks remain less explored. The DQS uses eight indicators, applied to a matched sample of green bonds, in accordance with the European Green Bond Standard (EuGB) and the ICMA Green Bond Principles (GBP). The results demonstrate that bonds issued under the EuGB present higher disclosure quality (mean DQS = 15.4/16) compared to GBP-aligned bonds (mean DQS = 11.4/16). Case studies show strong issuance-stage disclosure, but weak post-issuance verification. The framework enables lifecycle-wide accountability by reducing information asymmetry. The proposed lifecycle framework and DQS instrument offer a replicable model for improving disclosure quality and ESG performance standards, with direct implications for sustainable investment screening and ESG fund selection. Overall, the findings show that improving green bond credibility requires moving beyond issuance-focused disclosure toward lifecycle-wide verification.
Nicolici et al. (Thu,) studied this question.