BlackRock Says Debt Markets Are Already Pricing in ESG Risks

Nov. 18, 2019, 6:45 PM

Fixed-income investors have lagged in incorporating environmental, social and governance (ESG) factors into their strategies, but BlackRock Inc. says they now have more tools -- including benchmark indexes -- to bring sustainable debt into their portfolios.

“Traditionally ESG has been dominated by equity strategies and equity assets, and most ESG concepts have been deeper developed in the equity space,” BlackRock’s global head of sustainable investing Brian Deese said in an interview. “ESG in fixed income is harder -- it’s different -- but it may be even more valuable to understand ESG in fixed income and this is an allocation we ...

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