Demand for ESG bond funds is surging, but this summer the market came under fire as investigations highlighted some of these funds were invested in government bonds issued by the likes of Belarus or China.
Members of the fixed income community were quick to defend the sector, arguing not all should be tarred with the same brush. However, they acknowledged there is a long road ahead when it comes to determining the ESG status of the market. In August, a Financial Times investigation revealed asset managers' holdings of government bonds of certain countries such as Belarus. Meanwhile, The Times covered an investigation by SCM Direct which found multiple examples of misleading ESG-labelled bond funds. Standard Ethics launches bond rating using ESG assessment across conventional bonds ...
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