A study by IIM Indore researchers suggests green bonds are the most effective financial instrument for mitigating portfolio risk and addressing climate concerns simultaneously. Analyzing 11 years of data across global markets, the research found green bonds, like conventional bonds, significantly reduced portfolio volatility and downside risk. Unlike other green assets such as clean energy stocks or cryptocurrencies, green bonds offer portfolio protection while directly supporting climate risk mitigation, making them unique for long-term investment strategies.