Sustainability Linked Bonds

Helping companies build their Sustainability Linked Bond Program

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Companies are increasingly looking for opportunities to meet their sustainability performance targets while continuing to drive positive impact and change. As green financing continues to grow as a key priority for corporates, the emergence of sustainability-linked bonds (SLBs) has opened the door for more issuers to participate in sustainable financing, helping to diversify economic options available to companies and investors.

Learn more about Sustainalytics’ Sustainability-Linked Bond service.

Our Sustainability-Linked Bond Service

To support issuers in their pursuit of issuing credible sustainability linked bonds, Sustainalytics offers a second-party opinion service (SPO) on the SLB, which covers the following:

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Detailed assessment of the alignment with the SLB Principles, which assures investors that the transaction is credible and aligns with market expectations.

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Through a collaborative process with the company, we do a thorough assessment of the sustainability strategy to ensure it aligns with best practices.

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Assessment of the expected impact of the Sustainability Performance Targets (SPT) and the contribution to the SDGs.

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Meet Market Expectation

External verification that your bond aligns with the Sustainability-Linked Bond Principles.

 

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Signal Your Intended Impact

Assure investors that achieving the sustainability performance targets has a positive environmental and social impact.

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Gain Investors' Confidence

An SPO from a trusted ESG ratings provider, like Sustainalytics, provides additional assurance on the credibility of the issuer.

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Highlight Your Sustainability Efforts

Sustainalytics' SPO speaks to your sustainability strategy and how the targets fit into your past and future sustainability efforts.

KPI-SPT Assessment  Service

At Sustainalytics we also offer a KPI-SPT Assessment. The assessment is an evaluation of the relevance and materiality of an issuer’s Key Performance Indicators (KPIs) and the ambitiousness of the associated Sustainable Performance Targets (SPTs) that can be considered as part of the potential Sustainability-Linked Bond (SLB).  

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Non-public Assessment

The final report is a non-public assessment and can be used by the issuer teams only for internal purposes

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Sustainalytics Methodology

Final report will be a detailed KPI-SPT assessment in line with Sustainalytics’ SLB methodology

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Option to Extend

Issuer can extend the engagements to a full Second Party Opinion within 12 months

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No SPO commitment required.

The internal report can be used to inform Framework development process.

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Contract value

The assessment offered can be extended to a full SPO

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Expedited Assessment

The KPI-SPT has a quick turnaround time

Trusted by our clients

Why Sustainalytics?

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A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

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Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

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End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

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30 Years of ESG Expertise

800+ ESG research analysts across our global offices.

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A Leading SPO Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

Related Insights and Resources

Sustainable Finance Insights: Special Episode on Sustainable Finance in the Metals, Mining and Commodities Sector

In this special episode, we focus on sustainable and transition finance opportunities for issuers in the metals and mining sector and discuss considerations for banks, issuers and investors to fund improvements and mitigate environmental, social and regulatory risks.

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Sustainable Finance and the Inflation Reduction Act: 5 Key Takeaways for Issuers and Investors

In this blog we share 5 takeaways from our recent webinar on the U.S. Inflation Reduction Act, what it means for companies, issuers and investors, and how it can support their decarbonization goals.

Webinar Replay: Sustainable Finance and the Inflation Reduction Act

This webinar, hosted by Morningstar Sustainalytics, focused around the discussion of Sustainable Finance and the Inflation Reduction Act (IRA).

Sustainalytics Podcast

What’s Happening in Sustainable Finance: Sovereigns Focus on Biodiversity, Use of Proceed Instruments Gaining Ground as Sustainability-Linked Instruments Face Scrutiny, and More

Our review of the sustainable finance market looks at GSSS bright spots amid global financial headwinds, sovereign and corporates’ focus on biodiversity, and the uptick in use of proceed instruments as sustainability-linked instruments face scrutiny.

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Second-Party Opinions

Provide potential investors with assurance that the framework conforms to accepted market principles.

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