Green Bonds Don’t Make a Bond Fund ‘Green’

Environmental, Social, and Governance (ESG) bond funds’ sustainability levels can’t be measured by ‘green bond’ share. They require a more thorough comparison of the investors’ sustainability theory of change against the fund’s ESG policies & implementation investments.

An analysis of the ESG bond market has found a surprisingly small proportion of assets were invested in green bonds in most fundsSome ‘dark green’ funds had limited green bond exposure, but that may not be as indicative of the fund’s ‘green-ness’ as appears on first glanceThe green bond market isn’t representative of the bond market as a whole, and it isn’t lacking investor interest, which opens up other ways for...