Green bonds, distinguished from traditional bonds by the issuer’s obligation to use capital raised exclusively for environmental or sustainable impact, and to report on the resulting benefits, may be the best fixed income vehicle to accelerate the low-carbon transition.

Since the first green bond issued in 2007, the green/sustainable bond revolution is under way with record-breaking issuance of $450 billion in 2021 to date, thanks to accelerating activity by sovereigns as well as energy generation, real estate, and industrial companies.

The green bond market is challenged by the need for more universal labeling to set standards for positive environmental/sustainable impact, and transparency on the use of bond proceeds.

Among the first asset managers to invest in green and sustainable bonds, Mirova strives to address these challenges by seeking clear and ambitious bond issuance through stringent selection throughout the life of each issuance.

Mirova’s research and fixed income team members engage with bond issuers throughout each green security’s lifecycle via constructive, thorough dialogue to fully understand all facets of the issuance.

Many potential projects do not meet Mirova’s requirements for impact and ambition – a testament to their stringent and consistent due diligence. Examples are outlined here:

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