Sustainable and Impact Bond Funds

The evolving terrain of GSS bonds

Sustainable bond funds have seen remarkable growth, reaching USD 516 billion by the end of 2022, fueled by a surge in ESG interest. These funds prominently include GSS bonds—green, social, and sustainability bonds—which make up a diverse market. Green bonds dominate, forming about two-thirds of the GSS market, while social and sustainability bonds each contribute around 20%.

Challenges persist, particularly for green bond funds, but nonetheless bond funds offer enticing management fees that are competitive with traditional funds. Although social and sustainability bonds are niche with no dedicated funds, their contribution to ESG bond funds is pivotal in advancing a sustainable financial landscape.

Download this report now for more on the growth, diversity, and challenges in the GSS+ world.