Sustainalytics Podcast

What’s Happening in Sustainable Finance: The Nuance of ESG Ratings, the Impact of Climate Change on Sport, and “Code Red” for Humanity

Discussing diverse sustainability and green finance topics including the momentum behind sustainability-linked bonds, the latest IPCC report as well as recent sustainable finance deals and transactions.

Sustainability-Linked Loans - A Bridge to Connect Corporate Sustainability and Finance

Sustainability-Linked Loans: A Bridge to Connect Corporate Sustainability and Finance

In this ebook, corporate borrowers will gain insight into the increasingly popular sustainability-linked loan instrument and how it can support corporate ESG improvements.

Podcast microphone on blue-green background

What’s Happening in Sustainable Finance: Key EU Developments and the Untapped Market of Climate-Aligned Bonds

Covering summer developments in the global sustainable finance market, including the launch of the EU’s renewed sustainable finance strategy, the publication of the Social Loan Principles and the EU Green Bond Standard, and the continuing growth in the sustainable bond and loan markets.

Sustainable Finance The View from Down Under

Sustainability-Linked Debt Financing: The View from Down Under

For Australia, a country whose economy is historically rooted in heavy-emitting, hard-to-abate sectors, sustainability-linked debt financing could provide the spark needed to accelerate emission reductions and transition to a low-carbon economy.

What’s Happening in Sustainable Finance: The Push for Climate-Related Disclosures, Assessing SPT Ambitiousness, and More

Highlighting what’s new in the world of sustainable finance including the push for more company reporting climate-related risks, the emergence of more oil & gas companies exploring sustainable finance options and our tips on how companies can assess the ambitiousness of the targets used in sustainability-linked debt.

Infographic | Sustainable Finance by the Numbers

Check out our infographic showcasing sustainable finance by the numbers and see just how much the global green, social, sustainable and sustainability-linked debt market has thrived year-over-year.

Moving the Needle: How Loans and Bonds Are Being Tied to Corporate Sustainability Performance

The tide continues to rise for the sustainable debt market, with sustainability-linked debt contributing to its steady growth. In this article we take a closer look at what’s driving market adoption of sustainability-linked debt and the principles and frameworks guiding market participants.

Infographic | The Rise of Sustainable Bonds, Loans and Linked Instruments

To help bring companies, issuers and banks up to speed on what’s happening in the rapidly evolving sustainable debt market, we’ve created an infographic highlighting key concepts and recent market developments.

Financing Sustainability: Recent Trends in Sustainable Bonds, Linked Instruments and Disclosure

The “Financing Sustainability: Recent Trends in Sustainable Bonds, Linked Instrument and Disclosure” ebook shares insights on recent progress made by organizations bridging the gap between sustainability and finance.

What’s Happening in Sustainable Finance: Adopting the Climate Transition Finance Handbook, Recovery Through Sustainable Sovereign Debt and More

In this episode, we discuss ongoing diversification in the labeled bond market and highlight developments around transition finance guidance as well as new and updated principles in the loan market.

Sustainable Finance Insights on Transition Finance, Sustainability-Linked Bonds, Sovereign Bonds and More

In this episode, we discuss ongoing diversification in the labeled bond market and highlight developments around transition finance guidance as well as new and updated principles in the loan market.

trees in forest

Bringing Investors and Companies Together to Address the Climate Change Crisis

As Earth Day is around the corner on the 22nd of April, the Biden Administration is to convene a global climate summit. Following a historical precedent for several such events, since its inception in 1970, including signing the landmark Paris Agreement . We have seen positive developments since the Paris Agreement; societal actions to address some of the root causes of climate change have yet to suppress the negative trends . Historically, active ownership on climate change has focused on direct emissions from highly exposed sectors, such as fossil fuel and utility companies. However, the more complicated, less direct aspects of climate change have seen limited progress. Tackling such issues will see a strong need for collaboration from both countries and other key sectors, in particular, banking and finance. Banks are key to support this transformation; facilitating economic activity for positive change throughout the entire value chain is key.

Sustainability-Linked Loans 2021: The COVID-19 Effect, ESG Ratings & Continued Popularity

The sustainable finance market has seen an exponential increase in size and activity in recent years. Innovative offerings such as green, social, and sustainable bonds, green and sustainability-linked loans (SLLs), and most recently sustainability-linked bonds, have contributed to the market’s incredible growth. In 2020, boosted by varied financial needs and mainstream recognition of environmental, social and governance (ESG) parameters, global sustainable debt capital surpassed US$700 billion, a 30% increase compared to 2019. Part of this capital was channelled towards tackling the effects of COVID-19 as government agencies, supranational bodies and corporates borrowed money to support areas most affected by the pandemic, such as healthcare. This shift in fund usage in 2020 resulted in the rapid growth of social bonds and a commendable first year for sustainability-linked bonds.

Sustainability Linked Bonds

What are Sustainability-Linked Bonds? Sustainability-Linked Bonds (SLB) are a forward-looking performance-based instrument. The bonds financial or structural characteristics (such as the coupon rate) are adjusted depending on the achievement of pre-defined sustainability targets. The adjustment can be in both directions, e.g., an increase in coupon rate if targets are not met or a decrease in coupon rate if targets are met. The key difference with green/social/sustainability bonds is that the proceeds can be used for general corporate purposes.

What are Sustainability Linked Loans (SLLs)?

A Sustainability Linked Loan is focused on incentivizing sustainability improvements among corporate borrowers by linking the terms of the loan to their overall sustainability performance targets. SLLs can be used for general corporate purposes as the terms are tied solely to the borrower’s ESG-related performance.

Soaring on Success: The Growth of Sustainability Linked Loans

This four-part guide focuses on key areas of sustainable finance, offering companies, corporate investment banks and investors a better understanding of market trends and important developments.

Sustainable Banking Insights

An increasing number of financial institutions integrate sustainability considerations such as environment, social and governance factors into their investment decisions and product development. Increased customer awareness, regulations, and growing evidence of the long-term benefits of considering sustainability in investment decisions has led to a significant growth in the sustainable finance field.

Sustainable Finance on the Rise

This four-part guide focuses on key areas of sustainable finance, offering companies, corporate investment banks and investors a better understanding of market trends and important developments.

Sustainable Finance Solutions Opinion Services

An SPO provides potential investors with assurance that the use of proceeds for the bond or loan, as set out in the framework, are aligned to market practices.

Overview of Products and Services for Banks

As the largest second-party opinion provider, Sustainalytics works with hundreds of the world’s leading issuers and investment banks to help them bring credible sustainability bonds and loans to market.