Date: November 19, 2021
People tend to look at ESG factors from an equity perspective. ESG also plays a very important role in fixed income markets. Companies generally issue debt much more frequently than equity, making bondholders uniquely positioned to enact change by aligning their ESG priorities to a company’s capital funding needs.
Considering ESG factors in bonds is about mitigating downside risk. However, that's exactly what you want from the fixed income allocation of your portfolio. ESG objectives can be met without having to sacrifice yield, credit quality, duration, or diversification.
For more information please visit their website at www.bmo.com/investbetter.