Unlocking the Green Bond Frontier: Robeco's High Income Strategy Empowers Sustainable Investing

In a groundbreaking move, international asset manager Robeco has announced the launch of its High Income Green Bonds strategy, a game-changing investment solution that taps into the burgeoning green bond market. This innovative approach aims to provide investors with attractive income streams while driving meaningful environmental impact, aligning with the growing demand for sustainable investment opportunities.

Empowering Investors to Achieve Dual Objectives: Income and Impact

Harnessing the Power of Green Bonds

The green bond market has experienced remarkable growth in recent years, with global issuance exceeding $560 billion in 2023, according to Moody's. This surge reflects the increasing commitment of corporations and governments to finance climate transition plans and invest in capital-intensive projects that support decarbonization efforts. Robeco's High Income Green Bonds strategy is poised to capitalize on this trend, offering investors a unique opportunity to access high-yielding green bonds from corporate issuers worldwide.

Aligning with Regulatory Frameworks and Sustainability Standards

Robeco's new strategy is categorized as Article 9 under the EU's Sustainable Finance Disclosure Regulation (SFDR), a testament to its commitment to sustainable investing. The strategy's investment process is guided by a rigorous five-step green bond framework, ensuring that eligible bonds align with established market standards, contribute positively to environmental objectives, and adhere to robust impact reporting and issuer sustainability practices.

Combining Income and Impact: Robeco's Dual-Objective Approach

Joop Kohler, Head of Credits at Robeco, emphasizes the strategy's ability to deliver on both financial and environmental goals. "With the growing interest in transition investing, our High Income Green Bonds strategy meets the dual objective of sourcing attractive income for our clients, whilst providing a core tool for investors to achieve their impact goals," he explains.

Benchmark-Agnostic, Global Diversification

Robeco's High Income Green Bonds strategy adopts a benchmark-agnostic, global approach, allowing the portfolio managers to scour the entire green bond universe across all credit sectors. This flexibility enables the team to identify the most compelling investment opportunities, regardless of traditional market benchmarks, ensuring that clients benefit from a diversified and optimized portfolio.

Leveraging Robeco's Sustainability Expertise and Credit Capabilities

The strategy's success is underpinned by Robeco's deep sustainability expertise and the long-standing track record of its credit team. "Robeco's High Income Green Bonds strategy is our first strategy focusing purely on green bonds from corporate issuers," Kohler adds. "It successfully combines the depth of our sustainability expertise with the long-standing track record and capabilities of our credit team."

Navigating the Evolving Green Bond Landscape

The launch of Robeco's High Income Green Bonds strategy comes at a pivotal moment, as the green bond market continues to evolve and gain traction. With growing policy support and improving cost competitiveness of climate technologies, the demand for green financing solutions is expected to surge. Robeco's strategy positions investors at the forefront of this transformative shift, empowering them to capitalize on the opportunities presented by the green bond frontier.