Investors Aim to Save Emerging Markets Portfolios With Green Bonds

  • Money managers say ESG debt helps limit exposure to risk
  • Green bond demand is growing in emerging markets, CBI says
Photographer: Eddie Seal/Bloomberg
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As Fridays for Future marches sweep the world, emerging-market investors are snapping up a flood of green bonds to limit their exposure to risk -- and stay on the right side of history.

Countries and companies capable of fulfilling environmental, social and governance criteria for ethical investments are probably more stable and well managed than others, leading to less risk, said David Hauner, a cross-asset strategist at Bank of America in London.