“The need for clearly defined protocols for issuing and reporting on labelled bonds is evident. Emerging EU standards and regulations are likely to enhance issuers' reputation and improve investment opportunities.”Jane Wilkinson Independent Advisor, past member of the Technical Expert Group (TEG) on Sustainable Finance advising the European Commission, ex Head of Sustainable Finance at Luxemburg Stock Exchange
The EU Taxonomy
The EU Taxonomy is a classification system, outlining environmentally sustainable economic activities. It is also an opportunity for EU-based market participants to scale up sustainable investments. The aim is to create security for investors, protect private investors from greenwashing, and help companies become more climate-friendly.
EU Sustainable Finance Disclosure Regulation (SFDR)
This regulation captures financial market participants and financial advisers operating in the EU. It sets specific rules for what type of sustainability-related information and how they should disclose it.
ICMA Impact Reporting for Green Bonds
This handbook outlines baseline reporting principles to provide issuers with a reference as they develop their own reporting. It also offers impact reporting metrics and sector specific guidance for project categories.
ICMA Impact Reporting for Social Bonds
This working paper outlines a framework for reporting on projects to which Social Bond proceeds have been allocated. It also includes principles and recommendations for issuers as they develop their own reporting.
Nordic Public Sector Issuers Position Paper on Green Bond Impact Reporting
This is a practical guide on impact reporting for Nordic public sector green bond issuers. It is a benchmark for impact reporting for issuers, including environmental officers, sustainability analysts and investor relations specialists.
The ICMA Mapping towards the Sustainable Development Goals
This High-Level Mapping to the Sustainable Development Goals aims to provide a broad frame of reference by which issuers, investors and bond market participants can evaluate the financing objectives of a given Green, Social or Sustainability Bond Programme against the Sustainable Development Goals (SDGs).
European Green Bond Standard (EUGBS)
This voluntary standard helps scale up environmental ambitions of the green bond market. Issuers and investors have a robust tool to demonstrate they are funding legitimate green projects aligned with the EU taxonomy. Investors can easily assess and compare their investments against realistic and verifiable sustainability goals.
Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
This guideline represents six continents and supports the financial system to manage risks and to mobilize capital for green and low-carbon investments in the broader context of environmentally sustainable development.
History of labelled bonds
The UN Intergovernmental Panel for Climate Change (IPCC) publishes a report linking human action to global warming. The European Investment Bank (EIB) issues the first green bond dedicating the proceeds to renewable energy.
The World Bank issues its first green bond in partnership with SEB and selected Swedish pension funds, recognizing the risk posed by climate change.
The first ever green bond by a municipality is issued by SEB together with the City of Gothenburg and the world’s first green corporate bond is issued by Swedish real estate Vasakronan.
The first ever green bond is issued by a government agency, Export-Import Bank of Korea. International Capital Market Association (ICMA) publishes the Green Bond Principles.
Ecuador issues the world's first sovereign social bond, with the support of the Inter-American Development Bank (IDB).
The European Commission launches the EU Taxonomy for sustainable activities (a classification system to help investors understand whether an economic activity is environmentally sustainable) and the voluntary EU Green Bond Standard.
The labelled Bond market is worth more than USD 1 trillion with the sustainable finance market expanding to Social Bonds, Sustainability Bonds, Sustainability-Linked Bonds, Green loans, and Sustainability-linked loans.