Investors will soon be able to buy corporate bonds with a 'climate' certification, much as consumers with strong social and environmental convictions now buy coffee and chocolate products with labels such as Fairtrade and Rainforest Alliance. Carrying such a certification will enable institutional investors and pension funds, which have been looking to make their portfolios green, quickly to identify environment-friendly bonds without having to do the due diligence themselves. The 'Climate Bond Certified' standard will initially be aimed at corporate bonds linked to low-carbon assets, said Sean Kidney, executive chair of the Climate Bonds Initiative, a non-profit group backing the standard. In just a few weeks' time, a corporate bank is expected to issue the equivalent of around $500 million in an asset-backed bond that will carry the certification, the first of its kind.
No comments:
Post a Comment