Forward Momentum! — Two new approaches that spell out a-d-v-a-n-c-e-m-e-n-t for sustainable investment: World Bank and S&P Dow Jones Indices (separately) roll out new products and approaches with key partners’ participation.
Despite the nay-saying about climate change, global warming, sustainability and related subjects in certain quarters in the United States, major players in global finance enthusiastically rolled out new products / approaches for institutional customers.
First:  The World Bank, as part of its “SDGs Everyone” initiative has partnered with (initially) institutions in France and Italy for issuance of equity-index bonds that link returns to the performance of 50 companies that “advance global development priorities” as determined by the methodology of Vigeo Eiris Equities.  The bonds are being marketed by BNP Paribas. (Proceeds:  163 million Euros.)
The proceeds will be used to finance projects that help to eliminate poverty and boost shared prosperity, advancing Sustainable Development Goals (SDGs) that are being adopted by nations around the world.  This is the World Bank and partners “walking the talk” of sustainability and responding practically to the aspirational 2030 SDG goals.
Second:  S&P Dow Jones Indices (“S&P DJI”) created the S&P Green Bond Select Index (for ‘green label” bonds), to “meet strong market demand,” according to the company.  The first licensee is VanEck, to create an Exchange Traded Fund (ETF).   S&P DJI offers more than 100 financial indices to its global capital market customers. (The S&P 500, for example, represents more than 80% of U.S. value of corporate equities and is the most widely used benchmark.
G&A Institute each year monitors and reports on the S&P 500 universe of companies’ reporting on their sustainability journeys.  Watch for our news coming shortly on the latest survey results.
VanEck notes that the market value of “green bonds” was US$82 billion in 2016 and could reach $150 billion in 2017.  Click here for details . There’s also a good introduction to “green bonds” on the web site.
As Sustainable Brands, in reporting on the developments noted…”this could expand sustainability investment and drive it towards the mainstream…”  The details are here for you in our Top Story:
Dow Jones, World Bank Unveil New Financial Tools to Expand Sustainability Investments
(Wednesday – March 15, 2017)
Source: Sustainable Brands – &P Dow Jones Indices (S&P DJI), the world’s leading provider of index-based concepts, data and research, has announced the launch of the S&P Green Bond Select Index which captures the most liquid and tradeable segment of…