The Climate Bonds Initiative has released the Climate Bonds Social & Sustainability Bond Dataset Methodology report. With a view to further bolstering the credibility of social and sustainability (S&S) bonds, this report thoroughly measures areas such as transparency, evidence-based criteria as well as social and environmental contribution to target populations.
Part of this report includes an enhanced framework for assessing credible S&S bonds. As well as increasing transparency, this is also designed to mitigate impact washing in post-issuance reportage. The updated methodology now includes a detailed mapping of eligible use of proceeds (UoP) categories with corresponding ICMA indicators.
This methodology aims to demonstrate and encourage high levels of ambition from social and sustainability bond issuers, with the understanding that inclusion requirements may evolve over time. The methodology will be reviewed annually, in line with the Climate Bonds GBD Methodology, incorporating input from independent experts, data users, and other key stakeholders. The review process will also seek to incorporate relevant market developments. Bond classifications will not be altered retroactively as Climate Bonds refines and updates its screening criteria. Changes and updates to the screening criteria will be communicated. The aim is to foster ambitious practices within the labelled GSS bond market, addressing a range of social challenges such as poverty, hunger, healthcare access, education, and inequalities, while accelerating the transition to a low-carbon, climate-resilient, and just economy
To request access to the Social and Sustainability Bond Dataset (SSBD) Methodology, please contact Carlotta Michetti, Sustainability Methodologies Manager, at carlotta.michetti@climatebonds.net.