The latest developments in the ESG space.

T Rowe Price
In a bid to address the world’s growing water resource challenges, T Rowe Price, a Baltimore-headquartered investment manager, has launched the T Rowe Price Emerging Markets Blue Economy Bond Strategy (T Rowe Price Blue) – an investment strategy aimed at catalysing the corporate blue bond market. Already, the strategy, which is classified under Article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR), has secured funding of over $200 million.

In addition to capital from International Finance Corporation (IFC) and T Rowe Price, T Rowe Price Blue has secured initial commitments from investors, including Xylem, a global water solutions company that enables customers to build a more water-secure world, and Builders Vision, a team of investors and philanthropists accelerating promising solutions across food and agriculture, energy and oceans. The collaboration combines the asset management expertise of T Rowe Price with the commitment to sustainability of these partners. By demonstrating a viable investment model for blue bonds in emerging markets, the strategy will attract additional private capital at scale, the firm said in a statement.

"By aligning the strategy’s investment objectives with specific water-related United Nations Sustainable Development Goals, we are not only mobilising essential capital to protect and sustain our world's precious water resources, but we are also demonstrating our commitment to managing innovative and impactful investment strategies," Eric Veiel, head of global investments and CIO, T Rowe Price, said.

T Rowe Price Blue will invest in corporate bonds issued by financial institutions and real-sector companies in emerging markets that meet Blue Impact Investment Guidelines, developed jointly by T Rowe Price and IFC. These investments will support projects including marine ecosystem conservation, wastewater treatment, coastal climate adaptation, and clean water infrastructure, the firm continued.

“The strategy will directly benefit from IFC’s Blue Finance Guidelines, which provide a clear framework for channelling capital into high-impact ocean and water projects,” Mohamed Gouled, vice president, industries, IFC, added. “Together, they give investors both the investment products and roadmap to scale credible blue finance – transforming sustainable water management and ocean preservation into engines for resilience, employment, and long-term prosperity.”

Water scarcity and ocean health are escalating global threats. According to the United Nations, 2.2 billion people still lack access to safe drinking water, and over 80 per cent of wastewater is discharged untreated. Meanwhile, increasing degradation of ocean ecosystems has created an urgent need for solutions.

The strategy is aligned with UN Sustainable Development Goals 6 and 14, which target clean water and healthy marine habitats. It is classified under Article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR). The blue economy, which includes sustainable use of ocean and freshwater resources, is projected to reach $3 trillion by 2030.

Samy Muaddi, head of emerging markets fixed income at T Rowe Price, and Matt Lawton, head of impact fixed income, serve as co-portfolio managers of T Rowe Price Blue. The goal is to bring in $500 million for the new strategy.