Sustainability-Linked Bond Principles, 2020. Voluntary Process Guidelines

Abstract

sustainability-linked bond principles voluntary process guidelines june 2020 june 2020 sustainability-linked bond principles voluntary process guidelines introduction sustainability-linked bonds (“slbs”) aim to further develop the key role that debt markets can play in funding and encouraging companies that contribute to sustainability (from an environmental and/or social and/or governance perspective, “esg”). for such a role to be played and the market to thrive, integrity is of the utmost importance. the sustainability-linked bond principles (“slbp”) provide guidelines that recommend structuring features, disclosure and reporting. they are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to such financial products. the slbp are applicable to all types of issuers and any type of financial capital market instruments. issuance aligned to the slbp should provide an investment opportunity with transparent sustainability credentials. sustainability-linked bonds incentivise the issuer’ s achievement of material, quantitative, pre-determined, ambitious, regularly monitored and externally verified sustainability (esg) objectives through key performance indicators “kpis” and sustainability performance targets (“spt”). the slbp are collaborative and consultative in nature based on the contributions of members and observers of the green bond and social bond principles (referred to as the principles or …

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