As people around the world celebrate Earth Day on Sunday, April 22, we thought this is an opportune time to share our thoughts and explain how UCF’s investment in green bonds provides a competitive return and helps to develop a sustainable economy.
Below are excerpts from a discussion with Andrew Russell, Director of Fixed-Income Investments of The Pension Boards – United Church of Christ and Kathryn O’Neill McCloskey, Director of Social Responsibility, United Church Funds, as they share their insight on how investors can help protect the earth and achieve a competitive return from green investments. You can read the full article by clicking here.
Why should investors care about investing in green bonds?
Andrew Russell (AR): Investing in green bonds not only provides income and a competitive return but also offers investors the opportunity to finance projects that help reduce greenhouse gas emissions and mitigate climate change. Green bonds allow investors to align their investments with sustainability objectives like the 2015 Paris Climate Accord.
Kathryn O’Neill McCloskey (KOM): Green bonds and other environmental investing vehicles encourage companies to embrace their role in being a part of climate solutions. It is also a way for investors to signal how important environmental solutions are to their overall investment strategies.
Why is investing in green bonds an essential strategy for UCF?
AR: Investing in green bonds is one of several investment approaches we utilize to align our investments with our values. Our investment in green bonds supports the effort to transition to a low-carbon economy, which is the underlying theme of the United Church of Christ’s approach to climate change and global warming.
KOM: Investing in green bonds is an essential continuation of the work that UCF has done; it reflects our sensitivity and commitment to one of the UCC’s Three Great Loves – Love of Creation, which is so important to faith-based investors. UCF practices screening and the inclusion of investments that support our values, such as green bonds, complements our exclusion of investments that we find are not philosophically acceptable.