We believe climate bonds can allow investors’ capital to have environmental impact without sacrificing investment returns.
Green bonds have developed as a way to earmark financing for climate-friendly business activities.
Today, green bonds can give investors:
- Positive impact with their capital
- New standards of transparency and impact reporting
- The historical return and credit-quality profile of conventional investment-grade bonds (1)
While green bonds have developed to raise much-needed financing for the low-carbon economy, it remains a small market, and we believe it is worth expanding it by including non-labelled climate-bonds. In our view, this requires sophisticated proprietary selection and monitoring criteria.
(1) Represented by the Barclays Global Aggregate Index.