Green indexes: a sustainable future?

Differing selection criteria mean some ethical indexes are purer than others

image of a recycling logo on a pile of harvested trees

The face of environmental investing changed in March when German index provider Solactive launched the first index to offer exposure to bonds issued by organisations with environmental goals. Solactive's Green Bond Index tracks 33 constituents defined as "fixed-income securities that raise capital for a project with specific environmental benefits, where the proceeds go to climate mitigation or adaptation efforts". The index includes bonds from institutions such as the European Investment Ban