Sustainable bonds, in particular, are the foundation of a sustainable recovery, writes Pimco, one of the world’s largest asset managers with more than US$2.2 trillion ($2.9 trillion) under management as at the end of 2020. The global sustainable debt market grew 29% y-o-y to a record US$732 billion last year, helped by an explosion of bond issuance for social projects amid fallout from the pandemic, reports Bloomberg.
With the global economy brought to its knees last year, the pandemic focused the world’s attention on the rallying cries of environmental, social and governance (ESG) investing: inclusive economies; healthy communities; safe and equitable workplaces; resilient supply chains; and clean, alternative energy.
While most remain ideals for now, Pimco believes there is enough global capital to support a more sustainable global economy. “To effect meaningful change, however, we need greater alignment among bond issuers, asset owners, and asset managers; all need to focus on achieving healthy and inclusive global growth,” notes Pimco in its 2021 ESG Investing Report.
