Dutch asset management firm Robeco has unveiled its inaugural sustainable climate high yield bond fund. The ‘Climate Global High Yield Bonds’ strategy has a primary objective of actively reducing carbon footprints through high yield investments, assessed against a Paris Aligned Benchmark provided by Solactive. The fund has already attracted an initial investment of US$125 million from seed investors, with expectations of further asset growth in the years ahead. In an era where asset owners are increasingly committing to the principles of the Paris Agreement to reduce carbon footprints, the high yield sector has historically exhibited a higher carbon footprint compared to investment-grade bonds due to its sector composition and industry focus, according to the Dutch asset manager. Classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the strategy contributes to a 7% reduction in overall emission intensity within the portfolio on an annual basis. It starts with a 50% lower carbon intensity than the current investment universe and excludes fossil fuel-related activities. Sander Bus, Manager High Yield at Robeco, said: “We believe in safeguarding economic, environmental, and social assets to ensure a healthy planet where people can thrive for generations to come. This new strategy offers access to the high yield market with a significantly lower carbon impact than traditional high yield products. Our quality-tilted investment approach coupled with climate-focused considerations make our Climate Global High Yield Bonds a unique and impactful choice.”
