Sustainability Bond Guidelines

Sustainability Bond Guidelines

Description

Applied to finance or re-finance a combination of both Green and Social Projects. The Sustainability Bond Principles are intended for broad use by the market and they do the following − provide issuers with guidance on the key components involved in launching a Sustainability Bond, aid investors by promoting availability of information necessary to evaluate the social and environmental impact of their Sustainability Bond investments, and assist underwriters by moving the market towards expected disclosures that will facilitate transactions.

How It Works

The Sustainability Bond Principles are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Sustainability Bond market by clarifying the approach for the issuance of a Sustainability Bond.

Tool Outcome

Process guidelines for Sustainability Bonds. These are aligned with the four core components of both the Green Bonds Principles and the Social Bonds Principles with the former being especially relevant to underlying Green Projects and the latter to underlying Social Projects.

Sustainability Criteria

  • 1. Use of Proceeds
  • 2. Process for Project Evaluation and Selection
  • 3. Management of Proceeds
  • 4. Reporting

Additional Information

  • Users of the tool – Investors, Insurers, Public Authorities
  • Phase when the tool applies – Finance
  • Geographic application – Not specified – Applies globally