How ESG is impacting investment decisions

ESG-labeled bonds: How to evaluate the credentials of this unique security

The extraordinary growth of ESG-labeled debt issuance in recent years has driven a need for more robust evaluation of the environmental and social credentials backing up these issuances. Given the nascency of the ESG-labeled bond market, we have seen wild variations in the quality of green, social, ESG, and sustainability-linked bonds.

These bonds generally price at a premium (often referred to as the “greenium”) and are purchased by investors specifically looking to orient fund flows toward sustainable activities. So, it is vital that issuers provide adequate evidence and are accountable for delivering on their sustainable objectives.

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T. Rowe Price
T. Rowe Price

T. Rowe Price is a global asset management firm with broad investment capabilities across Equity, Fixed Income, Multi-Asset and Alternative Strategies, highly committed to excellence in service and putting client interests first. We understand that insurers have many unique considerations impacting portfolio design, and we are proud to work with many of the largest insurers in the world delivering diverse and custom solutions designed to meet those needs. Our dedicated insurance relationship managers act as an extension of your team and serve as a conduit to the T. Rowe Price organization while proactively bringing the firm’s vast resources to bear. We offer a consultative, problem-solving approach and the ability to implement solutions based on specific client objectives, constraints, and risk tolerance.

Ben Riley, Brian Rapino
Senior Relationship Managers, Insurance
100 E Pratt Street
Baltimore, MD 21202

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