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Most 18-year-olds have reached a level of development enabling them to run at full speed, yet many will agree that most teenagers still need a strong framework and second opinions to ensure that their activities meet proper standards.

The first sustainable fixed income instrument, or “green bond,” was issued 18 years ago by European Investment Bank (EIB), with its 2007 Climate Awareness Bond raising just shy of $807 million USD (the only green bond issued that year). And in its 18-year lifespan this market has grown rapidly, with cumulative green bond issuance at approximately $3.7 trillion USD to date and $176.4 billion USD for the first four months of 2025, according to the Climate Bonds Initiative. 

To help investors address the growing complexity and scope of sustainable fixed income, Morningstar Sustainalytics has updated its second party opinions (SPO) framework to answer investor demand for more nuanced evaluation of green bond issues. Among the various enhancements are a new sustainability contribution signal involving a four-level evaluation system that is context aware and focused on impact over labels.

In the latest “ESG in Conversation” podcast, Morningstar Sustainalytics Senior Director of Sustainable Fixed Income Research Kevin Ranney describes the market evolution that has driven Sustainalytics to upgrade its SPO offering.

“Sustainable fixed income, an innovative concept when EIB introduced its first green bond in 2007, caught on quickly as the market began to recognize this new debt instrument designed to channel capital toward sustainable projects. In addition to the exponential growth in the volume of green bond issuance over the last two decades, this market has evolved and broadened with respect to both types of issuers and the range of sustainability objectives. This growing complexity has put the onus on second party opinion providers like Morningstar Sustainalytics to raise the level of detail and nuance in our analysis.”