L&G launches climate-friendly bonds ETF on Xetra
Legal & General Investment Management has launched a new ETF giving access to so-called green bonds on Xetra and Börse Frankfurt.
With the L&G ESG Green Bond UCITS ETF - Dist, investors participate in the performance of bonds from industrialised and developing countries, which are issued by individual states, supranational organisations or companies and denominated in euros, US dollars or British pounds.
Green bonds pursue the goal of financing environmentally and climate-friendly projects. To prevent "greenwashing", only bonds that are classified and recognised as climate-friendly by the Climate Bonds Initiative are included. Furthermore, the bonds must have a minimum remaining term of two years. Excluded are issuers with business activities in the areas of coal, tobacco and weapons as well as those that do not comply with the principles of the UN Global Compact.