New recommendations on transparency and reporting in GSS bond market
Comprehensive new study yields positive findings, but areas of improvement remain
Highlights:
- Increased levels of commitment across a USD1.4tn issuer sample surveyed.
- 93% of issuers surveyed committed to report both allocations and impacts.
- 91% of issuers surveyed published dedicated GSS reports.
London 12/02/2025 09:00 GMT: The Climate Bonds Initiative has today released the Transparency & Reporting in the GSS Bond Market Report, a comprehensive study of post-issuance reporting in the GSS bond market, aimed at enabling a healthy and transparent market.
With support from the Inter-American Development Bank (IDB), International Finance Corporation (IFC), Singapore Exchange (SGX Group), The Global Methane Hub and reviewed by S&P Global Ratings. The report assesses GSS deals priced from 2020-2023, totalling USD1.4tn issued.
In a wide-ranging sample, signs are largely positive and that sovereigns and local governments in particular have demonstrated an improvement in transparency of reporting, as well as the adoption of best practices, building on a similar Climate Bonds study in 2021. Further, 91% of issuers published dedicated GSS reports -often annually – and 60% of issuers were found to have accessible, easy-to-find reports.
Climate Bonds have suggested a list of recommendations for high-quality and standardised reporting, but propose these four elements as a minimum:
- Scope – report allocations and impact.
- Bond identification – clearly state the scope of reports in terms of instruments and period covered, percentage of proceeds allocated and impact.
- Accessibility to disclosure.
- Frequency and timing.
While post-issuance reporting is not mandatory, it is a fundamental expectation for sustainable finance instruments and a core pillar of the ICMA Principles, which almost all issuers adhere to. “Emerging markets need a quantum leap in the quantity and quality of climate finance to accelerate the transition to low-carbon, resilient and inclusive growth”, said Jamie Fergusson, Global Director for Climate Business at IFC.
“Improving measurement and reporting of the financial and impact performance of labelled finance goes a long way to support this goal. This is exactly why IFC works across the entire supply chain of labelled finance - as an issuer, an advisor, a standard setter, a convener and a capacity builder. IFC’s Green Bond Technical Assistance Program (GB-TAP) is dedicated to building capacity and upskilling labelled bond issuers in the private sector in developing countries, and the program and its donors are delighted to have supported this important research.”
As well as the use of ICMA harmonised frameworks as an area to strengthen reporting, aspects such as reference to taxonomies and disclosure of historical data were highlighted as opportunities for more standardised coverage.
S&P Global Ratings commented: “We are pleased to have reviewed this important study. As a leading provider of second party opinions based on the Shades of Green approach, we have contributed insights into the evolving trends and practices we’ve observed in post-issuance reporting. At S&P Global Ratings, we believe that increased transparency is essential to the development of the sustainable bond market.”
Read the full report HERE: Transparency & Reporting in the GSS Bond Market | Climate Bonds Initiative
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Contact for Interviews and further information:
Barney Lloyd-Wood
Communications Specialist, Climate Bonds Initiative
barney.lloyd-wood@climatebonds.net
About the Climate Bonds Initiative: Climate Bonds is the leading international non-governmental organisation mobilising global capital for climate action. We drive the growth of the green and sustainable debt market through science-aligned frameworks including our taxonomies and standards, our Certification, our data and insights, and our provision of expert policy and technical advice. More information on our website here.
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