Sustainability bonds are bonds where the proceeds will be exclusively applied to finance or re-finance a combination of both green and social projects. The Sustainability Bond Guidelines (SBG), updated as of June 2021, confirm the relevance of the Principles in this context and facilitate the application of their guidance on transparency and disclosure to the sustainability bond market. The common four core components of the Principles and their recommendations on the use of external reviews and impact reporting therefore also apply to sustainability bonds.
For additional information on how to interpret this guidance especially for its practical application for transactions, as well as in the context of market developments and complementary initiatives, see the Guidance Handbook.
The Sustainability Bond Guidelines (SBG) 2021
Issuers considering issuing Sustainability Bonds can consult the Green Bond pre-issuance checklist and the Social Bond pre-issuance checklist that give guidance on the steps for establishing a Sustainability Bond Framework as recommended by the GBP and SBP. Issuers are also encouraged to complete the Sustainability Bond information template that gives a summary reflecting the main characteristics of a Sustainability Bond and illustrating its key features in alignment with the core components of the GBP and SBP. This contributes to market transparency and clarifies issuers’ alignment with the Principles. This helps inform the market participants on a standardised format. Completed templates can be made available on the Sustainable bond issuers database.
Translations of the Sustainability Bond Guidelines
Please note that the following translations are related to the 2017, 2018 and 2021 SBG editions, therefore the edition that each translation currently refers to is indicated below. They are being updated with the 2021 changes progressively.