Book Release: Responsible Investment in Fixed Income Markets

NEW BOOK RELEASE

RESPONSIBLE INVESTMENT IN FIXED INCOME MARKETS

· Edited by Joshua Kendall (Head of Sustainable Fixed Income, Bloomberg LP) and Dr Rory Sullivan (CEO, Chronos Sustainability), published by Routledge

London, 20 October 2022, Joshua Kendall of Bloomberg and Rory Sullivan of Chronos Sustainability have joined forces to edit a new book, Responsible Investment in Fixed Income Markets.

Featuring contributions from the Principles for Responsible Investment, PIMCO, the European Investment Bank, Morningstar and Zurich Insurance Company amongst others, the book provides the world’s first comprehensive account of responsible investment for fixed income investors. The contributors provide practical examples and evidence of how investors can apply sustainability issues in their investment practices and processes, and provide in-depth critical analysis of key issues such as the role and influence of credit rating agencies, green bonds, data and public policy in shaping investment practice.

The book demonstrates the role that fixed income investors can play in influencing the practices and performance of corporate and sovereign investors, the financial relevance of environmental, social and governance issues to fixed income investors, and the financial, legal and commercial arguments for investors to take account of these issues in their investment practices and processes. It also provides suggestions on how bond markets might be structured and incentivized both to scale up responsible investment-related efforts and to increase the flow of capital to support the low carbon transition and UN Sustainable Development Goals.

Joshua Kendall, editor of Responsible Investment in Fixed Income, commented: “Fixed income is a less well-known asset class for responsible investment. Yet, year-to-date bondholders have lent more than US$13 trillion in capital around the world. This capital supports the world economy and everyone within it, from emerging market governments through to privately held North American corporations. Bondholders are therefore a critical enabler of our integrated economic system, supporting business acquisitions through to funding public services. The reality is that transforming the world economy to a more sustainable footing will only be possible with bondholders’ participation.”

Dr Rory Sullivan, editor of Responsible Investment in Fixed Income, added: “For investors, this book provides practical guidance on how to improve the financial and the sustainability performance of their fixed income investments. It describes the role that fixed income might play in delivering the Sustainable Development Goals (SDGs), and provides a practical roadmap to unlock this potential.”

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For further information

Amanda Williams

amanda@chronossustainability.com

+44 7725 329 314

www.chronossustainability.com

Notes to editors

1. Responsible Investment in Fixed Income Markets, edited by Joshua Kendall and Dr Rory Sullivan, is available at: https://www.routledge.com/Responsible-Investment-in-Fixed-Income-Markets/Kendall-Sullivan/p/book/9781032350103

2. Joshua Kendall is Head of Sustainable Fixed Income at Bloomberg, and was previously Head of Responsible Investment Research and Stewardship at Insight Investment. He is an experienced responsible investment practitioner, whose experience extends across investment management, ESG research and stewardship.

3. Dr Rory Sullivan is CEO of Chronos Sustainability and Visiting Professor in Practice at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics. He is an internationally recognised expert on climate change and investment, and is the author/editor of ten books and many papers and articles on these issues.

4. The contributors to the book and their affiliation at the time of contributing are

· Manuel Adamini (BMO Global Asset Management)

· Natalie Ambrosio Preudhomme (Four Twenty Seven)

· Hortense Bioy (Morningstar)

· Thibaut Cuillière (Natixis)

· Sixtine Dubost (Principles for Responsible Investment)

· James Edwards (Moody’s Analytics)

· Alex Everett (Cameron Hume)

· Joan Feldbaum-Vidra (KBRA)

· Robert Fernandez (Breckinridge Capital Advisors)

· Thomas Girard (Natixis)

· Sarika Goel (Mercer Investments)

· Caroline Horbrügger (KfW)

· Radek Ján (Natixis)

· Benjamin Joseph (Morningstar)

· Johanna Köb (Zurich Insurance Company)

· Doris Kramer ( KfW)

· Arthur Krebbers (NatWest)

· Kevin Kwok (MSCI)

· James Lockhart Smith (Verisk Maplecroft)

· Keith Logan (Cameron Hume)

· Mariana Magaldi de Sousa (Center for Research and Teaching in Economics (CIDE))

· Will Martindale (Cardano)

· Scott Mather (PIMCO)

· Peter Munro (European Investment Bank)

· Emilie Nadler (KBRA)

· My-Linh Ngo (BlueBay Asset Management)

· Tomi Nummela (Mercer Investments)

· Carmen Nuzzo (Principles for Responsible Investment)

· David Oakes (Dauphin Financial Training)

· Lupin Rahman (PIMCO)

· Michael Ridley (HSBC Global Asset Management)

· Jaspreet Singh (NatWest)

· Justin Sloggett (Fitch Ratings)

· Andrew Steel (Fitch Ratings)

· Tamara Straus (Moody’s Analytics)

· Tudor Thomas (Insight Investment)

· Andrea Torres Villanueva (KBRA)

· Krista Tukiainen (Climate Bonds Initiative)

· Arabella Turner (Pictet Asset Management)

· Jana Velebova (BlueBay Asset Management)

· David Wille (Verisk Maplecroft)

5. Reviews of Responsible Investment in Fixed Income

'As CFA UK continues to support the investment sector to upskill and meet sustainability challenges, we are delighted to recommend this essential publication.'

CFA UK

'What really impressed me about the book was the timely and invaluable overview of fixed income and responsible investment. This enables readers to understand the relevance of sustainability to fixed income, with real life examples and contributions from practitioners and organisations. Considerable work has gone into outlining the outcomes that have been achieved and to reflect on the lessons learned. The approach taken is, commendably, one that impresses upon readers the dynamic nature of the sustainable finance movement and its relationship with fixed income, always keen to offer practical suggestions on how progress might be encouraged and developed.'

Fraser Lundie, Board member, CFA UK, and Head of Fixed Income, Federated Hermes

'How can we ensure that fixed income investments contribute to the goals of sustainable development? What role do standards and green taxonomies play in encouraging investment in socially and environmentally sustainable activities? How can we encourage greater investment in emerging markets? This book analyses the theory and the practice of responsible investment in fixed income markets. It is an invaluable guide to policymakers looking to design and implement policies and frameworks to drive sustainable finance.'

Helena Viñes Fiestas, Commissioner of the Spanish Financial Markets Authority and Rapporteur of the EU Platform on Sustainable Finance

'This book fills a critical gap in the responsible investment literature. It provides academics and researchers with rich practical insights into the realities of how investors take account of environmental, social and governance (ESG) issues in their investment practices and processes, and into the costs and benefits of doing so. It also identifies those areas – impact assessment, the influence of regulations, standards and taxonomies, the relationship between sustainability and financial performance – where academics and practitioners should work together in coming years.'

Simon Dietz, Professor of Environmental Policy, London School of Economics

'This is a timely publication providing much needed, practical advice from experts with hands-on experience. Fixed income markets have always lagged their equity peers when it comes to ESG integration, analysis and innovation. Making the leap to corporate debt is one step, but investors, issuers and regulators alike have struggled with how to bridge the gap to other types of issuers and assets. The book is a welcome compliment to the work the World Bank has been doing on sovereign ESG analysis and will be particularly useful for local investors in our client countries which have major allocations to public issuers and real asset classes.'

Fiona Stewart, Lead Financial Sector Specialist, World Bank

'Despite being the world's largest investment asset class, little is known about how fixed income investors might support and enable the transition to a low-carbon economy. This timely book comprehensively addresses that gap. It describes exactly how investors integrate social and environmental factors into their investment research and decision-making and into their engagement. And, critically, it explains how investors and other stakeholders can work together to　ensure that the fixed income markets respond effectively and at the scale needed to the threats, challenges, risks, opportunities and needs presented by climate change and sustainable development.' Adam Matthews, Chief Responsible Investment Officer (CRIO) Church of England Pensions Board and Chair Transition Pathway Initiative (TPI)

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This document is for use by journalists and media professionals only.

This document is a not a financial promotion and is not investment advice. Unless otherwise attributed the views and opinions expressed are those of Chronos Sustainability at the time of publication and are subject to change.

Press release, Book releaseAmanda Williams20 October 2022