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How To Avoid Greenwashing in Your Bond Portfolio

Global sustainable funds attracted $32.6 billion of net new money during the second quarter of 2022, according to Morningstar, despite the broader market seeing $280 billion in net outflows. At the same time, 245 new sustainable funds launched worldwide as asset managers continue to repurpose conventional products into sustainable offerings.

Greenwashing – or misleading investors about the environmental merits of an investment – is one of the biggest concerns for ESG investors. For example, a bond issuer might highlight its sustainability in one area while neglecting to mention its shortcomings in another part of its business. As a result, investors may be inadvertently doing harm.

Let’s take a closer look at greenwashing, evolving regulations designed to prevent it, and how investors can avoid it by turning toward independent verification.

Don’t forget to check our Fixed Income Channel to learn more about generating income in the current market conditions.

What Is Greenwashing?

How To Avoid Greenwashing

Most green bonds are externally-verified

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