Veteran environmental, social and governance (ESG) investor, Triodos, has stated it won’t purchase the UK’s long-awaited debt offering of green sovereign bonds, claiming that it is not green enough.
The money manager is well-known for its strict criteria, but it has invested in similar bonds offered by other countries, including France, Germany and Italy. Speaking to Bloomberg, Director for Bonds at Triodos, William de Vries, said:
“The UK green bond framework is the first one we consider not to be green enough according to our standards.”
The ESG investor is particularly concerned about debt proceeds being utilised for carbon-capture-type technology and the blue hydrogen plan. Both of these areas are key to the UK government’s ambition to reduce emissions, with ministers planning to issue around £15 billion pounds’ worth of in debt in this financial year in order to finance these and other projects.
Investment is currently flowing into carbon capture, a process that involves carbon dioxide being buried deep below the ground. The process is controversial, however, as on a larger scale, it has yet to be proven. This has led activists to argue that carbon capture could detract from the issue of cutting back emission levels. Blue hydrogen is created from natural gas, but requires a carbon dioxide by-product to be captured. Green hydrogen, however, is made from renewable energy sources via water.
UK consumers seeking ethical investment advice in Shropshire, Derbyshire and other counties can look to wealth managers for guidance. Wealth management teams use their experience and market knowledge to design portfolios using asset classes that represent sustainable investments, reflecting their client’s personal ethics.