Sustainability bonds are a key funding source for projects that have environmental or social benefits. Photo: Shutterstock Images
Sustainability bonds are a key funding source for projects that have environmental or social benefits. Photo: Shutterstock Images

Pitfalls of green finance: why credentials of some sustainability-linked bonds don’t stand up to closer scrutiny

  • Some bond issuers are seen as too lenient in setting performance targets and triggering penalties when they fail to hit their green targets
  • Popularity of green bonds is growing, with issuance in the year’s first seven months standing at US$49.7 billion versus US$8.2 billion in 2020

Sustainability bonds are a key funding source for projects that have environmental or social benefits. Photo: Shutterstock Images
Sustainability bonds are a key funding source for projects that have environmental or social benefits. Photo: Shutterstock Images
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