01 Nov 2019

Green Bonds: Transitioning from brown to green

browntogreen
serenav

With the inexorable rise in demand for ESG investments, Lyxor ETF is bringing the latest thought leadership straight to investors. In this guest vlog, Serena Vento, Director of Fundraising & Partnerships at the Climate Bonds Initiative, explains why ethical investors are embracing green bonds to help decarbonise their portfolios.

We caught up with Serena in Paris during one of our ESG roadshows and asked her why ethical investors are clamouring for green bonds. In short, green bonds have made it very easy for investors to shift capital at scale towards projects and assets aligned with a 2-degree pathway. “It’s a market that’s experienced enormous amounts of growth starting in 2013 with a few millions, and in just about 6 years has grown into $680bn outstanding globally in labelled green bonds”.

We also asked her to comment on recent issuance trends. While historically dominated by sovereign, sub-sovereign and financial corporate issuers, over the past few years the market has seen more diversification not only to more sectors (including non-financial corporates), but also in terms of use of proceeds such as sustainable transport, water infrastructure and waste. “Where we see the biggest shift is the green bond market starting to tap into those sectors which are the brownest. The biggest global emitters and polluters have an opportunity to transition their business models and potentially tap into the green bond market to enable their transition.”

Watch the full video below

Lyxor’s Green Bond ETFs

ETF Name TIKER TER trading CCY Replication Method
Lyxor MSCI Millenials ESG Filtred (DR) UCITS ETF - Acc MILL LN 0.15% GBP Direct (Physical)
Lyxor MSCI Millenials ESG Filtred (DR) UCITS ETF - Acc MILL LN 0.15% GBP Direct (Physical)
Lyxor MSCI Millenials ESG Filtred (DR) UCITS ETF - Acc MILL LN 0.15% GBP Direct (Physical)
Lyxor MSCI Millenials ESG Filtred (DR) UCITS ETF - Acc MILL LN 0.15% GBP Direct (Physical)
Lyxor MSCI Millenials ESG Filtred (DR) UCITS ETF - Acc MILL LN 0.15% GBP Direct (Physical)

This article is for informative purposes only and should not be taken as investment advice. Lyxor ETF does not in any way endorse or promote the companies mentioned in this article. The opinions expressed by Serena Vento are her own, as at October 2019,and do not necessarily reflect the views of Lyxor International Asset Management or Societe Generale. Capital at risk. Please read our Risk Warning below.

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