“In fixed income, generating outperformance isn’t about picking a winner; it’s about avoiding a loser. We look for securities that are likely to become more stable over time, increasing the chances of repayment and, in turn, enhancing our potential to outperform. ”
— Steve Liberatore
When we think of impactful investments, public fixed income probably isn’t the first thing that comes to mind.
Yet, it’s driving far more capital into climate finance than we see in private equity, venture capital, and public equities combined. It’s not just statistics – it’s proof of the powerful impact fixed income can achieve.
To learn more about the role of fixed income in sustainable impact investing, I’m speaking with Steve Liberatore, Head of ESG and Impact for Global Fixed Income, at Nuveen, one of the world’s largest asset managers. A true pioneer, Steve has spent nearly two decades defining what sustainable bonds can achieve, crafting innovative green, blue, and nature bond frameworks that have become blueprints for the industry.
Under his leadership, Nuveen’s impact fixed income strategy is tackling some of today’s most urgent challenges through a carefully structured approach that prioritizes positive social and environmental outcomes without compromising returns.
Steve’s strategy centers on “ring-fencing” proceeds to fund projects in four critical areas: affordable housing, renewable energy and climate, community and economic development, and natural resources. His approach drives large-scale impact by lowering the cost of capital for issuers, making it more affordable to finance sustainable projects that deliver long-term value.
In this interview, Steve breaks down how Nuveen’s global ESG strategy leverages public fixed income to drive measurable impact.
Tune in for a fresh perspective on how responsible fixed income’s unmatched scale is redefining impact investing and driving real, measurable change.
Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, YouTube Music, Amazon Music, or on your favorite podcast platform. You can watch the interview on YouTube here.
What was your favorite quote or lesson from this episode? Please let me know in the comments.
SCROLL BELOW FOR LINKS AND SHOW NOTES…
ADDITIONAL RESOURCES:
- Connect with Steve: LinkedIn
- Nuveen website
SHOW NOTES:
[00:00] Introduction
[03:15] Steve Liberatore’s background and education
[17:38] Early work experience
[31:23] Joining Nuveen and expanding its ESG & impact portfolio
[46:36] Overview of green, blue, social, and orange bonds
[50:56] Benefits of sustainable bonds for issuers
[57:30] Theory of change for impact investing in fixed income
[01:04:53] Performance of ESG-integrated bond funds
[01:11:24] Investing in bonds: Avoiding losers over picking winners
[01:22:33] Nuveen’s four thematic areas
[01:26:09] Nuveen’s impact measurement process
[01:32:25] Future of ESG and impact investing in fixed income
[01:41:34] Rapid fire questions
MORE STEVE LIBERATORE QUOTES FROM THE INTERVIEW:
“The biggest challenge in ESG and impact fixed income is misinformation – the misunderstanding that returns aren’t the primary focus. Too often, the asset management industry has treated this space as a marketing tool rather than an investment thesis. We’re investors first, aiming to drive returns, with ESG and impact as vehicles for achieving them. ”
— Steve Liberatore
“The public fixed income market, the largest capital market in the world, demonstrates the greatest ability to size and scale. Most issuers coming to this market aim to diversify their investor base, avoiding dependence on a single set of investors. By issuing green, blue, social, or orange bonds, issuers may attract investors who wouldn’t typically invest in general corporate purpose transactions.”
— Steve Liberatore
