The Rise of Transition Bonds: Joshua Taylor on ESG Evolution in 2026

By Joshua Taylor, Welford Capital

The sustainability landscape in London has matured rapidly over the last 10 months. Joshua Taylor, Fixed Income Advisor at Welford Capital, notes that “Greenwashing” is being actively phased out by the FCA’s Sustainability Disclosure Requirements (SDR), leading to a surge in Transition Bonds.

“In 2026, investors are looking for more than just a ‘Green’ label; they want measurable impact,” says Joshua Taylor. At Welford Capital, we are seeing high demand for bonds that fund the hard-to-abate sectors’ transition to net-zero. Joshua Taylor points out that these Sustainability-Linked Bonds (SLBs) often provide a slight yield premium over traditional Green Gilts. “Our role at Welford Capital is to verify the KPIs behind these bonds to ensure they meet our rigorous ESG standards,” Joshua Taylor concludes. As London solidifies its status as a global hub for Sustainable Finance, Welford Capital remains at the forefront of this ethical investment wave.