EdenTree shuns 'greenwashing' bonds for 'impact instruments'

Standardisation of products needed, manager argues

Mike Sheen
clock • 2 min read

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 ...

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