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As responsible and sustainable investing becomes an increasingly important consideration in the construction of any portfolio, it is key to remember that the work does not finish there. As an ethical investor, it is important to look beyond the top line and delve into the real impact of your funds and ensure you fully understand and support the values of companies you support.

ESG Bonds: A noble initiative that still demands scrutiny

David Katimbo-Mugwanya David Katimbo-Mugwanya Senior Fund Manager
Edentree Insight reports

The Rise of Social and Sustainable Bonds

David Katimbo-Mugwanya


Senior Fund Manager
30 Dec 2020

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Conclusion

ESG Bonds: A noble initiative that still demands scrutiny

In this Insight, we have sought to explain how the world of fixed income is evolving to support the transition to a more sustainable world. The different types of ESG bond instrument are helping fund this transition, incorporating societal as well as environmental drivers to help companies and governments achieve this vital change.

However, an ESG bond label is not a guarantee of good intent. As the scale of bond issuance in this space increases rapidly, so does the requirement for investors to make sure they fully understand the detail of the instruments and the responsible values of the companies they are supporting.

The different types of ESG bond instrument are helping fund the transition to a more sustainable world, incorporating societal as well as environmental drivers to help companies and governments achieve this vital change.

At EdenTree, we believe it is essential to conduct thorough due diligence not only on the investment instrument under consideration, but on the issuing entities themselves. We do this in order to truly understand their corporate practices, cultures and strategic vision from a responsible and sustainable investment perspective. Our responsible and sustainable investment framework benefits from 30 years of experience in delivering ‘profits with principles’ and we take pride in doing this thoroughly and with integrity on behalf of our clients.

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