Green bonds will be war bonds for the post-Covid generation

Holly Mackay

Holly Mackay

But it will present challenges too. The funds industry remains hell-bent on talking about how ESG has “been in our DNA for decades”. And of course this is a way broader subject than a handful of low-carbon, or thematic green funds.

But the contrast between what we expect to be clear, simple messaging on green bonds, compared to sincere, yet slightly convoluted fund industry messaging on broader ESG funds (coupled with nuanced stewardship debates on whether holding oil firms is evil or essential) could backfire and turn a newly receptive audience off. 

Greenwashing finger-pointing is likely to do more to confuse rather than to clarify.

Evidence we collected from advisers illustrates that clear, engaging and meaningful messaging remains an issue.

The number one thing they believe asset managers could do to help them engage clients in conversations about their ESG preferences is to provide more tangible evidence of the impact an investment has.

Holly Mackay is chief executive of Boring Money