Responsibility is a fundamental aspect of Evli’s asset management, and our aim is to provide our clients with access to a growing number of high-quality responsible investment products. The latest addition to Evli’s selection is the Europe Green Autocall Note 1/2019 certificate based on the European equity market, which was issued at the beginning of October. This is what is known as a ‘positive impact’ investment, where the proceeds of the issue are earmarked for the financing of projects with positive environmental impacts.
According to the issuer’s Green Note program, the bond capital is used to finance projects that support sustainable development. A Green Note issue does not impact an investor’s position; for example, the investor does not bear the risk of the projects financed with the issue. The program offers transparency regarding the use of the proceeds of the issue and helps the investor ensure that the assets are being targeted responsibly. The principles for the use of the assets are based on the Green Bond Principles of the International Capital Markets Association (ICMA).
The investment’s return is determined on the equity markets and its underlying instrument is an equity index that selects its companies based on their direct and indirect emissions, company-specific climate strategies and upcoming investments that aim at reducing emissions, for example. In addition to the responsible use of the proceeds, an index-based investment that selects companies with positive environmental engagement adds further value to end investors.
As the launch of the Green Note was well received, Evli will continue to offer and expand its selection of responsible investment alternatives, in accordance with its selected strategy. Transparency in the targeting of proceeds is an additional value and utilizing this is justified in every way.
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