Climate Bonds released the first in-depth report on sustainability-linked bonds (SLBs) just over two weeks ago. Its analysis points to a high share of SLBs currently lacking quality, a message which has been echoed repeatedly in media outlets – but that’s only half the story.
The sustainability-linked model provides a first-of-its-kind and powerful bridge between financial and sustainability performance, making more sustainability impacts financially material. This can be a highly effective mechanism to correct for the externalities of economic activities.
