For most of the history of impact investing, equities have dominated the conversation. There simply hasn’t been enough of a bond market driven by environmental, social and governance (ESG) factors to have commanded investors’ attention. This, obviously, is a problem for portfolio construction. How, after all, can an investment manager deliver a comprehensive and diversified impact portfolio across all asset classes without having the tool of bonds to offset certain risks? Starting with the World Bank green bond program, the ESG bond market has grown in recent years, with more than $200 billion of issuance in 2017. As a result, it is increasingly feasible for investors to build out the capital preservation and income portion a portfolio with bond investments that are fully aligned with their impact investment objective. Interestingly, much like with equities, research indicates that companies that incorporate ESG factors into their management has significantly better credit quality.