Sustainability-linked bonds – a new solution to support responsible finance
by Julien Duquenne, originator of Green & Sustainable Hub, Natixis
Responsible finance has taken a growing importance for economic stakeholders, institutional investors and corporates over recent years, making it vital for issuers to provide increasingly detailed non-financial information on their sustainability strategy, and be in a position to measure the environmental and social benefits of their businesses.
Financial institutions have therefore been developing increasingly specialized green financial instruments in response to this challenge, such as sustainability-linked bonds, with the International Capital Market Association (ICMA) publishing its principles on these products in June. These new instruments are an extension of green and social bonds that already exist on the fixed-income markets.