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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.

Sustainability-Linked Bonds (SLBs) are a forward-looking performance-based instrument, for which the bond’s financial or structural characteristics (such as the coupon rate) are adjusted depending on the achievement of pre-defined sustainability performance targets.

Review the second-party opinions for some of the green, social and sustainability bonds mentioned in our 500th SPO post. Learn more about the issuers, and the socially and environmentally focused projects and initiatives their bonds funded.

There is broad recognition that achieving international climate goals will require a significant reduction in greenhouse gas emissions from carbon-intensive sectors. The issuance of a Transition Bond may attract a more diverse pool of investors and help companies fund projects aimed at decarbonizing operations and supporting the progression to a low-carbon economy.

As our global community continues to endure an altered way of life amidst the on-going COVID-19 outbreak, it is only natural to ask what each of our lives, professional and otherwise, will look like on the other side. Once children and teachers go back to school and workers return to their offices, will our society have done everything it could have to mitigate the social and economic impacts of this crisis and will we have built in resiliency against future system shocks?

In the space of four months since the first cases of COVID-19 were diagnosed in Wuhan, China, the virus has spread to 178 countries globally. As a consequence, nearly 3 billion people around the world are living with varying degrees of lockdown imposed by governments aiming to slow the spread of the contagion.

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.

Sustainalytics believes that natural gas has an important role to play in the energy transition, and therefore is an appropriate target for transition finance.

The Sustainable Finance Market Insights podcast series is produced by Sustainalytics’ Sustainable Finance Solutions team. With this series, we deliver piping hot insights on the latest news and developments in the sustainable finance space.

Review the second-party opinions for some of the green, social and sustainability bonds mentioned in our 500th SPO post. Learn more about the issuers, and the socially and environmentally focused projects and initiatives their bonds funded.

Climate bonds, loans or debt instruments are used to finance or re-finance projects that address climate change and are in line with achieving the goals of the Paris Climate Agreement. Such projects include wind farms, solar plants, sustainable buildings, etc. and can be found in a multitude of sectors including shipping, agriculture, energy or forestry amongst others.

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.

Review the second-party opinions for some of the green, social and sustainability bonds mentioned in our 500th SPO post. Learn more about the issuers, and the socially and environmentally focused projects and initiatives their bonds funded.

Review the second-party opinions for some of the green, social and sustainability bonds mentioned in our 500th SPO post. Learn more about the issuers, and the socially and environmentally focused projects and initiatives their bonds funded.

What is the EU Action Plan on Sustainable Finance? Published in March 2018, it describes the The EU Taxonomy is a list of economic activities with performance criteria for their contribution to six environmental objectives.

The green bond market has seen major growth in recent years. There is, however, a strong recognition that achieving international climate goals will require significant reduction of GHG emissions from carbon-intensive industrial activities that to date have not been the focus of green finance and for which low-carbon solutions are generally not yet available at scale due to major technological and/or systemic barriers. Those are commonly referred to as transition sectors.

Has your organization issued a green, social or sustainability bond in the last couple of years? Have you communicated to your sustainability bond investors about the projects funded by the bond and their impact?

Review the second-party opinions for some of the green, social and sustainability bonds mentioned in our 500th SPO post. Learn more about the issuers, and the socially and environmentally focused projects and initiatives their bonds funded.

Interested in obtaining an ESG License from Sustainalytics to meet both internal and external business needs? Our ESG Risk Ratings are used by the world's largest institutional investors to help shape and guide their investment strategies when looking for top performing ESG companies.

Assicurazioni Generali SpA (“Generali” or the “Group”) is a global insurance and financial services company based in Italy. Founded in 1831, Generali now operates in over 60 countries with approximately 71,000 employees and is one of the world’s largest insurance providers by revenue. It is well positioned in the insurance business, and with its asset management business in Europe, with a growing presence in Asia and Latin America. In addition to Generali’s three strategic pillars ­– profitable growth, capital management and digital transformation – Generali established sustainability as a key initiative and one of its important goals for 2021 (Read more: https://www.generali.com/our-responsibilities).