The shift towards renewable energy is building, recording its highest growth rate of any energy source recorded in 2017.
Climate (or climate-aligned) bonds refer to labelled and unlabelled bonds for which proceeds are intended to finance projects and activities that contribute to a low-carbon and climate-resilient economy. Green bonds refers to explicitly labelled bonds for which the proceeds will be exclusively used
Issuer engagement on ESG factors is becoming increasingly commonplace. Investors are starting to formalise their engagement as an integral part of their approaches to responsible investment.
Principle 5 of the six Principles encourages collaboration by investors to enhance the effectiveness of their responsible investment approach.
Despite the motivations for engagement laid out earlier in this report, there remains significant inertia among fixed income investors to engage.