Looking for a powerful way to help slow global warming? The Climate Change Initiative projects $130 billion in green-bond issuance in 2017. That’s great news, because scientists are calling on issuers and investors to help effect change, as in this Nature article listing green bonds as one of six critical milestones that must be met if we’re to turn the tide. And here’s more good news: About 70% of the US green bond market is municipals, in dollar terms.
While labeled green bonds make assessing suitability a breeze for ordinary investors, bonds that are aligned to international definitions of green but that haven’t been through the expensive labeling process are abundant. That means that managers with in-depth research capabilities can find plenty of opportunities to invest sustainably.
For more ways to pursue good returns and good values in your portfolio, explore Inspired Investing, a new podcast series where senior leaders at Bernstein share their thoughts on investing with purpose, first-hand and check out related blogs here.