Robeco Launches High Income Green Bonds Strategy for Sustainable Finance Expansion
Key Ideas
  • Robeco introduced the High Income Green Bonds strategy to cater to the rising investor interest in green bonds issued by corporate entities globally.
  • The strategy aims to provide attractive income for clients while supporting environmental projects and aiding companies in their decarbonization efforts.
  • Managed with a global approach, the strategy requires bonds to meet Robeco's stringent green bond framework criteria, ensuring alignment with green bond market standards and impact reporting.
International asset manager Robeco recently launched the High Income Green Bonds strategy, focusing on high yielding green bonds issued by corporate entities worldwide. This move was a response to the increasing investor demand for green bonds, which are fixed income instruments with proceeds designated for environmental initiatives. The green bond issuance volume surpassed $560 billion in 2023, indicating a significant growth trend as organizations utilize these instruments to fund climate transition plans and eco-friendly projects. The High Income Green Bonds strategy falls under Article 9 of the EU SFDR regulation and emphasizes supporting companies in their decarbonization journey. Joop Kohler, Head of Credits for Robeco, highlighted the strategy's dual objective of delivering appealing income to clients while facilitating impact investing. Robeco's strategy adopts a benchmark-agnostic approach and encompasses a broad spectrum of credit sectors within green bond investments. Corporate bonds included in the strategy must adhere to Robeco's five-step green bond framework, ensuring alignment with market standards, impactful allocation of proceeds, regular impact reporting, environmental strategies, and adherence to international norms. Through this strategy, Robeco aims to merge sustainability expertise with their credit team's experience successfully. This initiative underscores the growing importance of sustainable finance and signifies a positive step towards promoting climate-friendly investments and contributing to global decarbonization efforts.
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