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Responsible investment has taken equity markets by storm. Although its penetration into fixed income markets has been slower, it is picking up speed there too.

Yet one area remains overlooked – government bonds.That’s a major oversight. After all, governments set the rules and regulations that companies and individuals follow, and without their support and investment, the world will not be able to tackle its most pressing problems – climate change in particular.Global average temperatures are already 1.

2C higher than they were in the pre-industrial era. And even if countries deliver on all the carbon emission-cutting pledges made so far, that degree of warming is expected to double to 2.4C by 2100.1Fixed income investors have a key part to play in providing the capital required to keep climate change in check. While individually, investors have a negligible influence on government policy, collectively they can make a real difference – after all, the investment community holds USD88 trillion in bonds issued by governments and their agencies.²