What are the benefits of investing in green bonds?

Can you explain just very briefly the benefits of being an ethical investor in bonds it doesn’t sound very uh sexy and exciting buying in bonds rather than equities but they do have quite a strong impact don’t they on companies and their behavior

This is what I mean it’s interesting i think often when we think of ethical investing we think of equities and that’s the main thing we think about but there’s quite there’s a growing sort of opinion school of thought that that says that if you’re selling or buying shares you’re sort of just you know passing bits of paper from one investor to another and where you can really have an influence is through being a bond investor because those are you know a company specifically needs your money as an investor for usually a specific project so any company can issue a green bond if it’s for a you know project that is sort of labeled as green so you could give a company money for this specific green project to help it to do that so you sort of have a better idea of where your money is going

That’s good and then um bond investors that I’ve spoken to you have also said that it can be quite handy around the negotiating table if you’re if that if a company is looking to refinance a bond or it wants you know more money from you the bond investor, these are professional investors obviously with a lot of money that if you you can push them then at that point you can say you know i’m only going to refinance you if you you know

Look a bit more at your climate change targets or something so there’s more of a conversation going on more often um which again is good for the from the influence point of view um i mean one thing about green bonds that you do have to bear in mind we were talking about um mario was talking about making sure that you’re not overly concentrated in certain areas with shares well green bonds

While they are rising in popularity they are they are huge to certain sectors so they’re most commonly issued by utility companies banks and european companies at the moment so you should be aware that if you’re buying say a green bond fund that you might have more of a skew to those areas so you should just be aware you

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