United Kingdom: Bank of England starts policing unruly world of ESG debt

The Bank of England will enforce its green criteria in corporate bond purchases for the first time, establishing a blueprint for investing in a part of the credit world rife with greenwashing.

Starting yesterday, the London-based central bank will only buy bonds with public environmental, social, and governance goals that meet its standards, and will start scorecards that grade bonds by their issuers’ levels of emissions intensity, among other metrics. It’s a marked shift for the central bank, which already buys ethical assets, but doesn’t filter them based on the firm’s credentials.

The BoE will also publish a list of issuers whose bonds it holds, which, together with the scorecards, are meant to encourage and guide investors to “green their portfolios,” Governor Andrew Bailey said in a statement earlier this month. A spokesperson for the bank declined to comment further.

This article was originally posted on bloomberg.com

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