FINALLY, A STANDARD FOR GREEN BONDS

Four groups have cooperated to create the “Carbon Yield,” a new standard for assessing green bonds.

Introduced by London-based Lion’s Head Global Partners, in cooperation with South Pole Group, Affirmative Investment Management and the Rockefeller Foundation, Carbon Yield quantifies the “greenness” of a “green” bond, a security used to finance carbon mitigation.

The new measure is intended to bring transparency to the green bond market, as investors can use Carbon Yield to determine the level of carbon mitigation of each bond they hold. The measure can also be used on the portfolio level to see the total annual emissions avoided via a client’s fixed-income allocation.