![\"\"](\"https:\/\/www.europesays.com\/france\/wp-content\/uploads\/2026\/08\/Bonds-and-Loans-1-716x385.jpeg\" "\\"Bonds-and-Loans-1.jpeg\\"\/")
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BNP Paribas Asset Management has warned that investors have been \u201cslow to adopt green bond funds at scale\u201d, with flows into Sustainable Finance Disclosure Regulation (SFDR)<\/a> Article 9 green bond mutual funds declining in recent years.<\/p>\n In a new report published with Investors for Purpose<\/a>, the UK manager also said there was \u201cno appreciable growth\u201d in AUM for its UK-domiciled green bond fund, despite adopting a Sustainability Impact label under the Sustainability Disclosure Requirements (SDR)<\/a>.<\/p>\n The \u00a373 million ($99 million; \u20ac85 million) AXA Green Short Duration Bond Fund applied the UK\u2019s Sustainability Impact label in late July last year, but according to Morningstar data net monthly flows since then have ranged between \u00a32 million in outflows and \u00a33 million in inflows.<\/p>\n The best month in the past three years was February 2025, when it picked up \u00a312.3 million in net flows.<\/p>\n \u201cAt a time when fixed income has become increasingly attractive, and climate and nature financing needs seem to be larger than ever, are we missing out on a prime impact and investment opportunity to allocate to green bonds?\u201d said BNP Paribas AM, which has since acquired AXA Investment Managers.<\/p>\n The firm also noted that an unnamed global green bonds index has achieved comparable performance with the Bloomberg Global Aggregate index, and significantly outperformed the ICE BofA Global Broad Market index with lower volatility than both over the past three years.<\/p>\n Inconsistent opinions<\/p>\n Investors for Purpose interviewed UK institutional investors about the role of green bonds in their portfolio, finding inconsistent opinions on the relative returns and concerns over the complexity of the asset class.<\/p>\n Three out of five raised concerns around performance, while market constraints, difficulty measuring impact outcomes and greenwashing and credibility risks were also brought up.<\/p>\n One asset owner said these assets \u201chave tended to underperform in a highly competitive market\u201d, while another warned that \u201cunderstanding additionality takes resources, especially where transparency is weaker\u201d.<\/p>\n \u201cSome second-party opinions are more useful than others,\u201d the second asset owner added. \u201cGreater consistency would help.\u201d<\/p>\n Similarly, the relative narrowness of the labelled bond universe \u2013 more heavily concentrated in financials, utilities and European issuers \u2013 also came up.<\/p>\n \u201cSector and regional concentration remains a challenge,\u201d one asset owner warned. \u201cGreen bonds work better within broader mandates, because it is difficult to meet sustainability and investment objectives in standalone sleeves.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"BNP Paribas Asset Management has warned that investors have been \u201cslow to adopt green bond funds at scale\u201d,…\n","protected":false},"author":2,"featured_media":70021,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12875],"tags":[24242,12883,4106,824,24247,42936],"class_list":["post-70020","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bnp-paribas","tag-asset-managers","tag-bnp-paribas","tag-bonds","tag-climate-change","tag-funds","tag-sdr"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/70020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=70020"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/70020\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/70021"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=70020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=70020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=70020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}