EdenTree shuns 'greenwashing' bonds for 'impact instruments'

Standardisation of products needed, manager argues

The green bond market is riddled with greenwashing and unacceptable levels of "additionality", and is in need of standardisation, according to ESG specialist EdenTree's David Katimbo-Mugwanya.

Instead, the manager of the £160m Amity Sterling Bond fund has focused his exposure on unrated "impact instruments" to gain exposure to ESG-positive investments and greater yields. Investment industry backs calls for Government issuance of green gilts Katimbo-Mugwanya explained the fund has limited exposure to green bonds, which tend to be US dollar or euro-denominated meaning he cannot "participate in a bigger way" in the sterling-focused fund. The overall green bond market is largely dominated by European issuers, which accounted for 40% of total global issuance in 2018, up from ...