Legal & Regulatory News

ICMA publishes sustainability-linked bond guidelines

09 June 2020

The International Capital Market Association (ICMA) has released the Sustainability-Linked Bond Principles (SLBP), which provide a high level framework of market guidelines relating to sustainability linked bonds, and which follow on from the Green & Social Bond Principles. The SLBP define sustainability linked bonds as forward-looking performance-based bond instruments where the issuer is committing to future improvements in sustainability outcomes within a pre-defined timeline.

For a bond to qualify as a sustainability linked bond under the SLBP, it must adhere to the five key components of the SLBP which are:

  • selection of key performance indicators (KPIs);
  • calibration of sustainability performance targets (SPTs);
  • bond characteristics;
  • reporting; and
  • verification.

    • In addition, the ICMA has updated the existing Social Bond Principles. The updated version includes a definition of a social issue which may benefit from a social project. It also includes an expansion of examples of project categories and target populations.


    Click here to access the SLBP.

    Click here to access the updated Social Bond Principles.

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