What Are Green Bonds?
How to consider whether they might be a good fit for your portfolio.
The trend in favor of sustainable investments is well-entrenched, and while many investors are happy to approach this growing market in a generic way--that is, favoring companies with good environmental, social and governance, or ESG, credentials--others go a step further and seek investments with an explicit and measurable impact.
Green bonds belong to this category. They’re a fairly new breed of bonds, and, though still a niche market, they are seeing significant growth.