BlackRock launches Green Bond Index

Investment giant BlackRock has launched a Green Bond Index Fund  offering investors exposure to a selection of green bonds in a product that BlackRock said will be “optimised” to deliver investment performance in line with the total return of the Bloomberg Barclays MSCI Global Green Bond Index.

“We see a strong interest in Green Bonds from clients we service as they seek to participate in climate friendly and environmentally beneficial investments without making major changes to sector allocation or liquidity risk in their holdings,” head of climate solutions Ashley Schulten said in a statement.

Her remarks echo comments made by S&P Dow Jones Indices, which earlier this month launched a Green Bond Select Index after noting “strong demand” for investment opportunities with strong environmental, social and governance (ESG) credentials. Meanwhile, the Shenzen Stock Exchange and Luxembourg Stock Exchange yesterday announced the launch of a new Green Bond Index Series tracking China’s green bond market in comparison to Europe.