A new trend is emerging in the world of ESG as companies turn their attention to cleaning up old debt. They’re either buying back conventional notes, which could finance just about anything, or transforming old securities to green.

Italian utility company Enel SpA is leading the charge in buybacks with the largest one to date: about 1 billion euros ($1.19 billion).

French real estate group Gecina SA in May transformed billions of existing notes to green bonds, the first deal of its kind. It’s not much compared to the trillions of euros of outstanding so-called brown debt, but it’s another step toward Europe’s attempt to become the world’s first climate-neutral continent by 2050. So far, only a few companies have purged — at least partly — their finances of normal bonds. Still, the transition is gathering momentum.

Firms Scrub Dirty Bonds Off Books to Boost ESG Credentials – Bloomberg