Sustainable Bonds Insight 2021 - Environmental Finance
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Sustainable Bonds Insight 2021
Sustainable Bonds Insight Contents
1 Introduction 21 Use of proceeds by volume and value 46 Fostering clarity
in sustainability
2 2020 Market overview 22 Impact finance: the case for
harmonising finance and social
good 49 Issuance by currency
3 Largest green and social bonds in 2020
25 Driving ESG bond markets to 50 Covid-19 response bonds
4 Largest sustainability and sustainability-linked
new heights
bonds in 2020 Corporate &
Investment Banking
51 Social bonds
5 Top 5 largest issuing countries in 2020 28 Driving impact in housing
in the green bond market 52 Sustainability bonds
affordability and environmental
sustainability
6 Top 5 largest issuing countries in 2020 53 Sustainability-linked bonds
in the social bond market 31 Nomura: helping to finance
54 Bringing transparency
Asia’s low-carbon transition
7 Top 5 largest issuing countries in 2020 to the sustainable bond
in the sustainability bond market market
34 Lead managers – total market
8 Supranational issuance 57 A broader approach
35 Lead managers – green, social, to ESG
sustainability and sustainability-linked bonds
9 At a crossroads
of innovation 36 External reviewers by share of issuers 60 Latin America
12 Trends in sustainable bonds 37 External reviewer coverage of CBI deals 61 Asia
issuance and a look ahead
to 2021 38 Breakdown of bonds aligned 62 Distribution of issuance value
with the SDGs in 2020
15 Navigating sustainable debt 63 Growth, impact, engagement:
instruments: from green 39 Sector breakdown and lead managers a year in sustainable fixed
and social to transition and of largest SDGs income through a
sustainability-linked bonds Covid-19 lens
40 The sustainable bond market
18 Annual issuance by type, value and tenor beyond 2020 – green bonds 66 Connecting and developing
strike back markets
19 Monthly issuance by value and volume
43 London Stock Exchange:
20 Breakdown of issuer type enabling a credible transition 69 Market predictions for 2021
www.environmental-finance.com
Introduction Sustainable Bonds Insight
2
020 was another record-breaking year for the green, December, providing support for sustainability-linked and
social, sustainability and sustainability-linked (GSSS) transition bond issuance in the future.
bond market. By the end of 2020, eight sustainability-linked bonds aligned
According to figures from the Environmental Finance Bond with the SLBP had been issued – raising just shy of $9 billion
Database, total GSSS bond issuance crossed $600 billion in in total. The ground-breaking $750 million note from Brazilian
2020 – nearly double the $326 billion issued in 2019. Growth paper firm Suzano in September was soon followed by a €1.85
in the GSSS bond market in 2020 accelerated on the 53% billion ($2.2 billion) bond from Swiss pharma giant Novartis,
year-on-year growth reported in 2019 compared to the $214 €600 million note from luxury fashion house Chanel, and a
billion issued in 2018. JPY10 billion ($96 million) bond from Japanese real estate
The number of super-sized issuances also exploded. More firm Hulic.
than 50 bonds raising $2 billion or more were issued in 2020, Our poll suggests some respondents expect sustainability-
up from just 15 such issues in 2019. linked bond issuance to surge to as much as $30 billion in
More growth is expected in 2021. A poll conducted by 2021, though more than two-thirds believe the instruments
Environmental Finance indicated more than two-thirds of will raise between $20 billion to $25 billion.
respondents expect between $600 billion and $700 billion to For transition bonds, a marker has already been set in 2021
be raised during the year, with the majority of the remainder by the handbook-aligned $780 million dual-tranche Bank of
forecasting between $700 billion and $800 billion. China note in January. Like many of the ‘transition’ bonds
Yet, it was not the scale of the growth– impressive as it was – issued before it, the Bank of China bond received a mixed
Author: Ahren Lester, senior reporter, that strikes me the most about the sustainable bond market in welcome from the market. Nonetheless, the orderbook was
Environmental Finance 2020. For me, it was the growing diversification of sustainable strong and we can expect more transition bonds in 2021 as
bond issuance that fascinates. Rewind to 2018 and over 85% of issuers and investors look to refine the instrument.
total GSSS bond issuance was through green bonds, in 2019 So, 2020 was certainly an interesting year for the market –
this proportion only dipped modestly to four-fifths. 2020, but 2021 should prove to be even more so.
however, saw the share of the market held by green bonds – Momentum continues to build to take action on the climate
despite continued growth – fall to just under half. emergency, meanwhile the pandemic and Black Lives Matter
Social bonds, in particular, were the star performer of the protests have focused attention on the social inequality rife in
year. Driven on by the demands created by the Covid-19 our communities. Governments, companies and consumers
pandemic, social bond issuance jumped nine-fold to $165 are increasingly growing both more empathetic about the
billion – supporting projects to get individuals, businesses and challenges around us and more energised to do something
For enquiries about the data in this economies back on their feet. Sustainability bond issuance also about them.
Insight, or about www.bonddata.org, tripled to $140 billion in 2020. Finance remains one of the most powerful tools to help
please contact ashton.rowntree@ Nonetheless, 2020 has also laid the groundwork for further effect this change, and the sustainable bond market looks
fieldgibsonmedia.com diversification in the market for the year ahead. The publication set to continue to innovate and grow in order to help set the
of the Sustainability-Linked Bond Principles (SLBP) in June pace. There is no time to waste, certainly, but the potential of
was followed by the Climate Transition Finance Handbook in sustainable bonds is increasingly being grasped.
www.environmental-finance.com 1
Sustainable Bonds Insight 2020 Market overview
Value breakdown by type of bond; total market Top 10 biggest issues of 2020
size $608.8 B
Issuer Currency Value in local Value in USD
Green bond 295,851 currency (M)
Social bond 164,874 European Union EUR 17,000 19,976
Sustainability bond 139,294
European Union EUR 14,000 16,606
Sustainability-linked
8,781
bond European Union EUR 8,500 10,127
0 100,000 200,000 300,000
Value ($M) IBRD USD 8,000 8,000
Federal Republic of
Volume breakdown of green social, sustainability Germany
EUR 6,500 7,771
and sustainability-linked bonds of 2020
Sustainability bond Sustainability-linked bond Société du Grand Paris EUR 6,000 7,065
(187) (16)
IBRD USD 6,000 6,000
Social bond
(159) Cades EUR 5,000 5,897
Total:
1,744 Federal Republic of
Green bond EUR 5,000 5,845
Germany
(1,382)
Cades EUR 5,000 5,825
2 www.bonddata.org
Largest in 2020 Sustainable Bonds Insight
The largest deal and issuers of the The largest deal and issuers of the
year in the green bond market year in the social bond market
Largest Single Green Bond Largest Supranational Largest Single Social Bond Largest Supranational
Federal Republic of European European Union European Union
Germany Investment Value: €17,000 M Value: $46,708 M
Value: € 6,500 M Bank ($19,976 M)
($7,771 M) Value: $6,051 M
Largest Issuer Largest Corporate Largest Issuer Largest Corporate
Federal Republic Prologis European Union East Nippon
of Germany Value: $3,731 M Value: $46,708 M Expressway
Value: $13,616 M Value: $3,723 M
Largest Agency Largest Financial Institution
Largest Agency Largest Financial Institution
Cades Citigroup
Fannie Mae China Development
Value: $22,282 M Value: $2,500 M
Value: Bank
$13,093 M Value: $1,964 M
Largest Sovereign Largest Municipal Largest Sovereign Largest Municipal
Federal Republic of New York Republic of Chile Massachusetts
Germany Metropolitan Value: $2,308 M School Building
Value: $13,616 M Transportation Authority
Number of Deals: 2 Authority Value $1,445 M
Value: $3,697 M
www.bonddata.org 3
Sustainable Bonds Insight Largest in 2020
The largest deal and issuers of the year The largest deal and issuers of the year
in the sustainability bond market in the sustainability-linked bond market
Largest Single Sustainability Bond Largest Supranational Largest Single Deals
IBRD IBRD Novartis
Value: Value: Value: $2,196 M
$8,000 M $54,697 M
Number of
Deals: 51
Largest Issuer
Suzano
IBRD
Largest Corporate Value: $1,250 M
Value:
Alphabet Inc.
$54,697 M
Value: $5,750 M
Largest Agency LafargeHolcim
Value: $1,006 M
Agence Francaise
Largest Financial Institution
de Developpement
BNG Bank
Value: $2,361 M
Value: $3,244 M
NRG Energy
Largest Sovereign Value: $900 M
Luxembourg
Largest Municipal
Value: $1,777 M
Federal State of NRW
Value: $2,822 M Schneider Electric
Value: $770 M
4 www.bonddata.org
Top 5 largest issuing countries in 2020 Sustainable Bonds Insight
in the green bond market
For the fourth consecutive year the US and France were two of the top three biggest issuing countries of green
bonds, with Germany growing to the second largest.
China $15,667 M
Largest deals
USA $61,388 M China Development Bank
CNY 10,000 M ($1,428 M)
Largest deals
China Construction Bank $1,200 M
AES Corporation $1,800 M Bank of China CNY 3,000 M
Fannie Mae $1,746 M and $500 M ($938.8 M)
New York Metropolitan
Transportation Authority $1,725 M Largest issuers
China Development Bank $1,964 M
Largest issuers
China Construction Bank $1,344 M
Fannie Mae $13,093 M Beijing Enterprises Holdings $1,184 M
New York Metropolitan
Transportation Authority $3,970 M
Prologis $3,731 M
France $37,012 M The Netherlands $14,995 M Germany $41,297 M
Largest deals Largest deals Largest deals
Société du Grand Paris EUR 6,000 M ($7,065 M) TenneT EUR 1,350 M ($1,597 M) Federal Republic of Germany EUR 6,500 M ($7,771 M)
Republic of France EUR 2,607 M ($2,858 M) State of the Netherlands EUR 1,420 M ($1,594 M) Federal Republic of Germany EUR 5,000 M ($5,845 M)
EDF EUR 2,400 M ($2,838 M) State of the Netherlands EUR 1,195 M ($1,340 M) KfW EUR 3,000 M ($3,432 M)
USD conversion taken from pricing date Largest issuers Largest issuers Largest issuers
resulting in variation in USD value
Société du Grand Paris $12,550 M State of the Netherlands $2,934 M Federal Republic of Germany $13,616 M
Methodology: Deals from supranational Republic of France $7,412 M TenneT $2,745 M KfW $9,496 M
entities have not been included in
individual countries. EDF $2,838 M De Volksbank $1,736 M E.on $2,482 M
www.bonddata.org 5
Sustainable Bonds Insight Top 5 largest issuing countries in 2020
in the social bond market
France, USA and Japan are the three biggest issuing countries in the social bond market in 2020.
Japan: $8,296 M
Largest deals
East Nippon Expressway JPY 70,000 M ($652 M)
Mitsubishi UFJ Financial Group EUR 500 M ($556 M)
USA $10,277 M East Nippon Expressway JPY 60,000 M ($545 M)
Largest deals Largest issuers
Citigroup $2,500 M
East Nippon Expressway $3,723 M
Massachusetts School Building Authority
Japan Student Services Organization $1,117 M
$1,445 M
Japan International Cooperation Agency $829 M
Inter-American Investment Corp $1,000 M
Largest issuers
Citigroup $2,500 M
Korea: $7,745 M
Massachusetts School Building Authority Largest deals
$1,445 M France $49,598 M The Netherlands: $4,477 M
Korea Housing Finance Corporation
Inter-American Investment Corp $1,000 M Largest deals Largest deals EUR 1,000 M ($1,102 M)
Cades EUR 5,000 M ($5,897 M) Nederlandse Waterschapsbank NV Export-Import Bank of Korea EUR 500 M ($592 M)
Cades EUR 5,000 M ($5,825 M) EUR 2,000 M ($2,185 M) Korea Housing Finance Corporation
Nederlandse Waterschapsbank NV EUR 500 M ($561 M)
Unédic EUR 4,000 M ($4,523 M)
EUR 1,000 M ($1,192 M)
Largest issuers
Largest issuers Nederlandse Waterschapsbank NV $912 M
USD conversion taken from pricing date
Korea Housing Finance Corporation $1,102 M
resulting in variation in USD value Cades $22,282 M
Largest issuers Export-Import Bank of Korea $1,492 M
Unédic $19,378 M
Methodology: Deals from supranational entities Nederlandse Waterschapsbank NV $4,477 M Kookmin Bank $1,000 M
have not been included in individual countries. Agence Francaise de Developpement $2,000 M
6 www.bonddata.org
Top 5 largest issuing countries in 2020
Sustainable Bonds Insight
in the sustainability bond market
USA, Netherlands and France are the three biggest issuing countries in the sustainability bond market in 2020.
USA $18,631 M
Largest deals
Alphabet Inc. $5,750 M
International Development Association
$2,000 M
Bank of America $2,000 M
Largest issuers
Alphabet Inc. $5,750 M
International Development Association
$4,000 M
Bank of America $2,000 M
Spain $3,570 M
Largest deals
Comunidad de Madrid EUR 1,250 M ($1,360 M) France $5,195 M The Netherlands: $5,416 M Japan: $4,963 M
Basque Government EUR 600 M ($712 M)
Largest deals Largest deals Largest deals
Autonomous Community of Galicia EUR 500 M ($585 M)
Agence Francaise de Developpement EUR 2,000 M BNG Bank EUR 1,000 M ($1,163 M) Mitsubishi UFJ Financial Group JPY 150,000 ($1,413 M)
Largest issuers ($2,361 M) Development Bank of Japan EUR ($828 M)
BNG Bank $1,000 M
Region Ile de France EUR 800 M ($616 M) Tokyo Tatemono JPY 22,000 ($371 M)
Comunidad de Madrid $1,648 M BNG Bank $2,000 M
Orange EUR 500 M ($593 M)
Basque Government $1,268 M
Largest issuers Largest issuers
Autonomous Community of Galicia $584 M Largest issuers
BNG Bank $3,244 M Mitsubishi UFJ Financial Group $1,413 M
Agence Francaise de Developpement $2,361 M Japan Railway Construction, Transport
USD conversion taken from pricing date resulting in variation in USD value Koninklijke Philips NV $1,076 M
Region Ile de France $616 M and Technology Agency $958 M
Methodology: Deals from supranational entities have not been included in Nederlandse Financierings-Maatschappij voor
individual countries. Orange $593 M Ontwikkelingslanden NV - FMO $548 M Development Bank of Japan $828 M
www.bonddata.org 7
Sustainable Bonds Insight
Supranational issuance
Annual supranational issuance of green, social Breakdown of supranational issuance in 2020
and sustainability bonds
90,000 100
180,000 160
80,000
70,000 80
160,000
140 60,000
Volume
60
Value ($M)
50,000
140,000
120 40,000
40
30,000
120,000
20,000
100 20
Value ($M)
Volume
10,000
100,000
0 0
80 Green Social Sustainability
bonds bonds bonds
80,000
60 Value of deals Volume of deals
60,000
40 Top 5 supranational bonds 2020
40,000
Issuer Value Bond category
20,000 20
€17,000 M
European Union Social bond
($19,975.5 M)
0 0 €14,000 M
2016 2017 2018 2019 2020 European Union Social bond
($16,605.8 M)
€8,500 M
European Union Social bond
($10,127 M)
Value ($M) Volume of deals
IBRD $8,000 M Sustainability bond
IBRD $6,000 M Sustainability bond
8 www.bonddata.orgSustainable Bonds Insight
At a crossroads of innovation
Sustainable finance continues to drive innovation in sustainable finance solutions for BNP Paribas. Its bankers explain how the events of 2020 are
shaping their approach to both the needs of issuers and investors alike
BNP Paribas’ 2021 outlook for sustainable EF: What trends are driving sustainable finance activity
finance in 2021?
CC: We see three trends driving sustainable finance activity
Environmental Finance: How is sustainable finance in 2021. Firstly, ahead of COP26, industry leaders are setting
tackling the environmental and social challenges of ambitious targets to tackle climate change. Many companies
today? are setting their own zero-carbon announcements and science-
Constance Chalchat, head based corporate commitments are also ramping up.
of company engagement Secondly, with the US re-entry to the Paris Agreement,
at BNP Paribas CIB: we foresee an important year ahead and expect we will have
We have reached a point a great deal of work to support our clients as they embark
of no return where both on the ambitions of the new green deal. This alignment of
institutional investors and climate policies towards a low carbon economy is a global
corporates realise that phenomenon too, and we are seeing a scaling up of zero-
delivering on sustainability is carbon commitments from governments around the world,
essential to doing business in including China, the UK, and beyond.
Frederic Zorzi, global head of primary markets
the 21st century. Finally, greenwashing, inflated claims about sustainability
Despite the ongoing credentials and questionable use of green frameworks will be
economic and social impacts addressed by more rigor and harmonisation across the industry. climate transition finance has expressed itself via the use of
of the Covid-19 pandemic, This will ensure that sustainability-labelled transactions are not proceeds concept with transition bonds, and more recently
we are continuing to witness met with investor skepticism and remain credible. with an expansion of KPI-linked products. Both have attracted
how investors and corporates a broad demand from investors as it links public environmental,
are ramping up commitments Transition as a priority for primary markets social and governance (ESG) strategies for the issuer with
towards tackling environ- their funding requirements.
Constance Chalchat, head of mental and social challenges, EF: How transformational will climate transition In terms of a rebalancing, we will likely see some issuers
company engagement, BNP while recognising the vital finance be? move from traditional financing to transition financing
Paribas CIB role finance has to play in a Frederic Zorzi, global head of primary markets at BNP through these approaches. Overall, the objective remains to
responsible recovery. This will Paribas: We are facing one of the biggest industrial challenges improve environmental impact and futureproof the business
also drive innovation in sustainable finance solutions, further in history. Finance will be needed to support industrials and model towards a progressive strategy that aligns to a low-
rebalancing towards solutions with positive impact. institutions through the low-carbon transition. The validity of carbon economy.
www.environmental-finance.com 9Sustainable Bonds Insight
EF: How have issuers and investors responded to their sustainable strategies. Furthermore, a milestone moment
increasing regulatory support for transition strategies? was when the European Central Bank (ECB) included
FZ: Investors increasingly believe in the importance of sustainability-linked bonds (SLBs) as eligible collateral in their
transition strategies. They fully understand the importance to asset purchase programme. This meant the market started
align what can be seen as the “brown” sectors with a Paris to recognise SLBs as a viable tool for supporting corporate
compliant trajectory. For those issuers and investors wanting transition through finance.
to be ahead of the regulatory requirements from the EU We expect this increased momentum on sustainability-
taxonomy and specifically, the ‘do no significant harm’ criteria, linked products to result in a deeper focus on ESG data and
transition is top of the agenda of investors who are keen to help frameworks that will help align and standardise disclosures and
corporates achieve their sustainability goals. reinforce risk management.
There is also a need to scale up the development of blended
Innovations ahead for capital markets finance structures in collaboration with the public and
social sector to mobilise private sector capital toward riskier
EF: What market innovations have caught the attention investments, and we expect to see more securitisation solutions
of BNP Paribas? or derivatives market for climate risk mitigation and better
Delphine Queniart, global head of sustainable allocation of risk.
finance & solutions at BNP Paribas Global Markets:
Sustainability-linked products are growing alongside the EF: How is BNP Paribas responding to such market Anjuli Pandit, primary markets sustainability manager
embedding of science-based targets at a corporate level. These developments?
enable issuers to have transparent and credible targets to meet DQ: We learn and grow by meeting our client’s specific needs, The investor perspective
which is why knowing our clients is key. We have embedded
sustainable finance experts across the entire spectrum of EF: How have investors responded to the events of 2020?
products within our Global Markets division to ensure Anjuli Pandit, primary markets sustainability manager,
that whatever the client needs, from innovative sustainable BNP Paribas: 2020 was the year of the “greenium” – the
capital markets solutions through to sustainable investment clear trend that there is some pricing advantage to issuers
opportunities, we will be able to provide them with the best bringing a strong sustainability framework to the market as we
solution. BNP Paribas innovates in creating climate-aligned saw multiple issuers price inside their secondary curve.
financial instruments and also on solutions delivering social Although there were various market dynamics which
impact. contributed to the cheaper pricing, we heard directly from
Specifically on climate finance, we are likely to see the many key ESG investors that they believe there is a value to
translation of global carbon budgets into sector and region- be placed on ESG data, on ESG frameworks, and on investing
specific pathways. Having sector expertise and a holistic directly in the ESG ambitions of an issuer.
strategy across sustainable finance is vital to our approach, as it The call for social action also stimulated a more balanced
is necessary to scale up transition finance across multiple high look at ESG investing, where social and governance started
emission sectors – from steel and transport, to construction to take more prominence both from a products perspective
and real estate. The corporate commitments emerging across (e.g social bonds and Covid bonds), but also in informing the
these sectors need to be reflected in the frameworks being larger ESG view of the issuer. It is no surprise that as investors
created in the sustainable product market, and part of our role start to focus on the big picture ESG story, that they will also
is to ensure we can support the integrity, transparency and a begin to align with SLB structures. The beginnings of this
Delphine Queniart, global head of sustainable finance & solutions
genuine transition roadmap for our clients. market started to grow in the second half of 2020, and the first
10 www.environmental-finance.comSustainable Bonds Insight
SLBs received very positive responses from investors. We can sectors haven’t yet fully entered this space. On the back of the The result of these three
imagine this will be a main focus for 2021 now that the ECB landmark transactions of Eurazeo and EQT last year, we are factors is a greater product
can also buy this format (albeit only with an environmental expecting private equity funds to be much more present in and sector diversification.
KPI). the SLL market in the near future. We’d also anticipate smaller With new products,
size companies to tap into SLL funding, with adapted KPIs such as SLBs, issuers
EF: What needs to happen for the sophistication of ESG targeting transition towards a low carbon economy. from resource intensive
investment strategies to keep improving? sectors can now access
AP: Data will be the key focus on helping investors to develop EF: What are some of the unresolved questions in this the ESG bond market
more sophistication on ESG investing. This will be driven space? provided they have
through the EU taxonomy and the EU’s Sustainable Finance CM: What we anticipate for the year 2021 is a convergence the right sustainability
Disclosure Regulation (SFDR) as investors put market of the SLL with the SLB. Greater transparency and analysis strategy in place. In that
pressure on issuers to disclose more information so that they of the two instruments are now being undertaken. Ultimately respect, LafargeHolcim
can report against these new regulations. As investors become it will result in a common and integrated approach adapted has opened up the market
more accurate and specific in their measurements, through the to the sustainability strategy of our clients and will bring to the cement industry
integration of scientific data into the assessment criteria – e.g. increased integrity to the market. with its debut SLB, and
carbon metrics and biodiversity impacts, or granular social We already saw an interesting example of this with Tesco, as we expect more carbon
data – such as employment security and gender balance – they in October 2020 BNP Paribas supported Tesco to become one intensive sectors to follow
Agnès Gourc, co-head,
will be better able to identify impactful investing opportunities. of the first UK retailers to establish a SLL which was linked to suit including steel, and sustainable finance markets
emissions reduction, renewable energy and food waste. Then energy intensive industries.
KPI-linked products in 2021 three months later the bank was joint sustainability structuring SLBs are also well
advisor and joint bookrunner on Tesco’s €750 million ($910 adapted to sectors which are less capex intensive. We
EF: When do you million) benchmark SLB, which also targeted reduction in the anticipate we will see a range of sectors in that category to tap
expect to see more UK retailer’s greenhouse gas emissions. This is a great example the market.
sustainability-linked of how a large corporate can utilise both the SLL and SLB to 2020 was also the year of the auto manufacturers coming
products come to completely align their financing and environmental strategy, in in size to the green bond market with great results, pricing
market? a transparent and scientific way. through their conventional bond curve for the most part, with
Cecile Moitry, co- This is the reason why BNP Paribas is taking a very active more players expected from the sector.
head, sustainable part in discussions both at the Loan Market Association level, We are seeing the development of sustainable convertible
finance markets at but also in connection with International Capital Market bonds coming to the market as well, and we have been active
BNP Paribas: By nature, Association (ICMA) dialogues. on several landmark deals including green convertible bonds
sustainability-linked loans from EDF and the first ever sustainability-linked convertible
(SLLs) are available to a Sector specific outlooks for sustainable bonds for Schneider Electric.
wide range of companies finance From an issuer category and geographical perspective, we
and sectors as they aim expect a broader range of issuers to come to the ESG bond
to improve the overall EF: Which sectors are as yet untapped and have market in the high yield and emerging market spaces which
ESG performance of a potential for issuance for SLBs? could open new sectors as well. Also given the notable shift
company, whilst not being Agnes Gourc, co-head, sustainable finance markets in climate policy in the US, we can expect increased activity
constrained by a specific at BNP Paribas: We are at an interesting crossroad for the in sustainable bonds coming out of issuers in the Americas,
Cécile Moitry, co-head, use of proceeds. ESG bond market, led by regulation on the one hand, investor which will be matched by equally high engagement from the
sustainable finance markets Nevertheless, some demand on the other hand, and finally product innovation. investor community.
www.environmental-finance.com 11Sustainable Bonds Insight
Trends in sustainable bonds issuance
and a look ahead to 2021
Moody’s forecasts that sustainable bond issuance will hit a record in 2021. Experts from Moody’s ESG Solutions Group and Moody’s Investors Service
outlined to Environmental Finance the key sustainable finance trends they are keeping an eye on for the year ahead
G
lobal issuance of use of
Green Bonds Social Bonds Sustainability Bonds
proceeds green, social $700
and sustainability
(GSS) bonds – collectively
$600
referred to as sustainable
bonds – hit record volumes in
Annual Issuance ($billions) $500
2020 with $491 billion issued,
according to Matt Kuchtyak,
assistant vice president, ESG $400
at Moody’s Investors Service.
Moody’s expects issuance to $300
reach another new record $650
billion in 2021, a 32% increase Matt Kuchtyak $200
over last year. This total will be
comprised of approximately $375 billion of green bonds, $150 $100
billion of social bonds and $125 billion of sustainability bonds.
The heightened market focus on coronavirus response efforts $0
drove social bond issuance to new heights in 2020 with issuance 2013 2014 2015 2016 2017 2018 2019 2020 2021F
reaching $141 billion, up from just $17 billion in 2019. Social
Figure 1: Sustainable bonds to hit record $650 billion in 2021 Sources: Moody’s Investors Service, Climate Bonds Initiative, Dealogic
bonds were heavily concentrated among issuers responding to the
pandemic throughout the year. Sustainability bond volumes also
continued to grow, with issuance doubling in 2020 to $79 billion. After the pandemic slowed green bond issuance during the first $375 billion for all of 2021, which would represent 39% growth
“Although some of this growth is attributable to financings half of 2020, the segment rallied in the second half of the year, over 2020,” he says.
related to the pandemic, there has been greater diversity in bringing full-year volumes to a new annual record of $270 billion. Although the pandemic-related financings that helped propel
sustainability bond issuance. We see the broader focus on Moody’s expects this momentum to continue as the economy sustainable bonds volumes will likely wane as 2021 progresses,
corporate sustainability as a lasting trend in this segment, which continues to rebound and issuers increasingly pursue debt the pandemic experience has heightened the focus on global
will contribute to our forecast of 58% growth in sustainability financing for environmentally friendly projects. environmental and social risks and accelerated many of the trends
bonds in 2021 to $125 billion,” says Kuchtyak. “As such, we are anticipating green bonds will total around supporting sustainable finance that were already underway.
12 www.environmental-finance.comSustainable Bonds Insight
“Thus, we see continued growth in sustainable bond volumes in Labelled bonds often become an effective and efficient way – climate adaptation, clean water, biodiversity restoration, green
2021 and beyond, with more issuers turning to these instruments to start the sustainability dialogue with the market and begin transportation, unemployment reduction – to name just a few
to highlight their sustainability plans, investors increasingly building an internal reporting infrastructure necessary to respond examples.
demanding labelled sustainable bonds, banks seeking to green to stakeholders’ information needs.
their underwriting and lending practices and governments Trend two: The rise of sustainability-linked
increasingly aiming to combat climate change.” EF:What has driven the rise of governments and agencies financing
Energy transition-related activities will also drive growth within as issuers of these bonds? Is it a short-term reaction to
these types of instruments, he adds. the pandemic or a longer-term shift in issuer behaviour? EF: The rise of sustainability-linked bonds (SLBs) has
“We also expect sustainable bonds to continue to increase as AZ: Governments and agencies are increasingly issuing labelled been a key development for green debt issuance. What
a share of total global issuance as they have in recent years. With bonds to raise capital for sustainable development projects more trends are you seeing in this space?
this expected growth in sustainable bonds, and expectations that broadly. These issuers are at the forefront of responding to social Benjamin Cliquet, head of
global debt volumes will pull back after the pandemic-fuelled and environmental risks presented by climate change, as well as sustainable finance business
record year, sustainable bonds may represent between 8% and other key challenges of the 21st century, such as ensuring social development at Moody’s ESG
10% of total global bond issuance in 2021,” he says. cohesiveness in the face of growing income inequality. Solutions Group affiliate,V.E: 2020
In this regard, we provided second party opinion (SPO) was the breakout year for sustainability-
Trend one: Increased issuance by ‘firsts’ for a sovereign in The Middle East (Egypt), and the linked instruments. The publication of
governments and agencies first sustainable development goal (SDG) bond for Mexico. the Sustainability-Linked Bond
Social bond issuance certainly surged in 2020, as the pandemic Principles and the rapid growth of the
Environmental Finance: Corporates traditionally have highlighted the need to direct funds towards projects with social SLB market has placed a spotlight on
been the main issuers GSS bonds – why do you think they benefits, however this trend did not start with the pandemic. Benjamin Cliquet their potential and attractivity as a
were the trailblazers? Furthermore, since Poland issued the first sovereign green sustainable financing approach.
Anna Zubets-Anderson, Vice bond in December 2016, more countries have been entering the Amongst others, we provided pioneering SPOs for JetBlue the
President, ESG analyst at Moody’s market. Sovereign GSS issuance grew from $10.7 billion in 2017, first airline to deploy a sustainability-linked loan (SLL), and
ESG Solutions Group: Corporates to $17.5 billion in 2018 and $21.8 billion in 2019, and reached Schneider’s first sustainability-linked convertible bond.
have been the leading sector to issue $40.5 billion in 2020, according to data compiled by Moody’s Their cross-sector appeal is a key attribute. Since there is no
labelled bonds since the green label first Investors Service and Environmental Finance. We believe that we need to identify specific projects or to ring-fence the proceeds
kicked off the market in 2014. This is will continue to see growth in issuance from governments and related to these instruments, they are innately more accessible to
part of the overall trend of growing agencies well beyond the pandemic. more types of issuers.
focus on business sustainability, which In addition, because SLLs and SLBs do not focus on current
we expect to continue in 2021 and EF: How do you think this will change the landscape for absolute performance but rather on the improvement of it, they
beyond. the types of GSS bonds available and the use of proceeds are also more attractive to issuers that may still be in the early days
Anna Zubets-Anderson In addition to managing their that are being allocated? of their sustainability journey.
corporate social responsibility AZ: We believe that governments will increasingly issue green Given these attributes, in the mid-term, we can reasonably
reputations, companies must respond to asset owners and bonds to fund climate mitigation and adaptation projects, as they expect the number of sustainability-linked instruments to match
managers who are increasingly focused on the impact of work to combat the effects of climate change and meet their Paris the pace of traditional sustainable bonds and loans. SLLs and
environmental, social and governance (ESG) risks on their climate agreement commitments. SLBs will also likely influence more issuers to improve their
portfolios. Furthermore, there is a real need to advance strategic That said, compared to corporates, these issuers are also sustainability performance and to set quantified targets.
and operational resilience. In response to these pressures, issuers more likely to issue labelled bonds that fund programs that There are two related projections that we would draw attention
are shifting how they measure their performance along the ESG are widely diversified, target many different goals and span to. Firstly, these instruments will likely become a key tool for
dimensions and how they interact with the capital markets. multiple years. They are likely to cross many eligible categories companies with heavy environmental footprints to showcase
www.environmental-finance.com 13Sustainable Bonds Insight
$80 Alongside exposure, it is important to understand a project’s
Asia Pacific Europe Latin America Middle East & Africa North America sensitivity to these hazards, as a hydropower development would
$70
be more vulnerable to water stress for example, than a toll bridge
which would be more disrupted by flooding. This is particularly
Quarterly issuance ($billions)
$60
important due to the long-life cycles and large capital investments
$50 in infrastructure projects.
Whether or not a bond focuses explicitly on a resilience project,
$40 to ensure that it remains operational and allows the issuer to
repay its loan, it is important that the planning phase accounts
$30
for changes in extreme conditions and factors in the necessary
$20
steps to construct infrastructure that is prepared to withstand
these conditions.
$10
EF: What part can resilience bonds play here?
$0
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
NA: Resilience bonds are a recently developed capital market
instrument to raise money for adaptation and resilience projects.
Figure 2: Sustainability-linked loan volumes hit record $68 billion in Q4 2020 Sources: Moody’s Investors Service and Dealogic They are a specific type of green bond, and they require that
proceeds must be specified for climate resilience projects. The
and finance their climate transition strategy for the coming years. Trend three: Climate risk and resilience Climate Bonds Initiative lays out Climate Resilience Principles
Thus, these issuances will provide an opportunity for external explaining which activities qualify as resilience activities.
stakeholders to have a view on corporate climate trajectories and
in the bond markets The need for climate-resilient infrastructure presents significant
their alignment with the Paris Agreement. EF: How does physical climate risk fit into the green bond investment opportunity and resilience bonds provide an
Secondly, SLLs and SLBs appear to be complementary conversation? important vehicle to finance climate adaptation while fitting into
to sustainable bonds and loans: while sustainability-linked Natalie Ambrosio Preudhomme, the investment strategies of many large institutional investors and
instruments provide a forward-looking approach of one issuer’s director of communications at providing an attractive investment for those striving to integrate
strategy, the more traditional use of proceeds model enables them Moody’s ESG Solutions Group ESG factors into their portfolios.
to highlight the concrete investments that will be made to achieve affiliate, Four Twenty Seven: When The first resilience bond was issued by the European Bank
the targets. it comes to floods, storms, and extreme for Reconstruction and Development (EBRD) in 2019. It was a
temperatures the past is no longer an five-year bond and was oversubscribed by $200 million showing
EF: What are the risks and the practical challenges of accurate representation of what the the appetite for this type of investment. Proving the benefits
supporting such engagements? future may hold.When considering any of resilience is challenging because by definition a successful
BC: It is not simple for all sectors to identify comparable metrics infrastructure project, it is essential to resilience project is about avoiding impacts on a community or
referring to highly material issues. So, the first challenge is of take into consideration a forward- project that may have otherwise occurred during an extreme
course for issuers to find the relevant KPI(s) to be included in Natalie Ambrosio looking view of climate projections at event.
the mechanism. In addition to this, setting quantified targets for Preudhomme the planned location of these projects. As more resilience bonds are issued, tracked and reported upon
the next five, ten years (or even more), and publicly committing This means leveraging the best it will be easier for the market to quantify the value of resilience.
on these, can be considered as both risky and complex. To date, at available science to understand what the asset is likely to experience As the frequency of climate change-driven events increases, it
least in the SLL market, we have seen that banks have used ESG over the duration of its life cycle, in terms of inundation events, is becoming widely understood that investing to prepare for
ratings as an easy solution; enabling them to cover a wide range of water stress, higher average temperatures and other phenomena, extreme events pays off significantly, compared to repeatedly
material sustainability issues in one shot. based on its location. repairing and rebuilding after the fact.
14 www.environmental-finance.comSustainable Bonds Insight Navigating sustainable debt instruments: from green and social to transition and sustainability-linked bonds For all its flaws, 2020 was a significant year for the sustainable bond market. Not only did the number of labelled issuances markedly increase, the breadth of sustainability topics being addressed also expanded following the release of key new market guidelines. These, most notably, included the Sustainability-Linked Bond Principles (SLBPs) and the Climate Transition Finance (CTF) Handbook, both administered by the International Capital Market Association (ICMA), as well as the Usability Guideline of the upcoming EU Green Bond Standard. Against this backdrop and as we look ahead to 2021, ISS ESG believes these initiatives are opening the door to more sectors for sustainable debt financing and will allow all issuers more flexibility in structuring their commitments and showcasing ambition. Environmental Finance spoke with ISS ESG to discuss the range of options available to issuers and how to select the best approach Environmental Finance: Looking back on 2020, what stands out to you in terms of market developments? Federico Pezzolato, sustainable finance business development manager for EMEA & APAC at ISS Corporate Solutions: The numbers speak for themselves, there has been a notable rise in both social and sustainability bonds. What stands out most prominently in our view, however, was the launch of important new industry guidance and standards: the SLBPs and the CTF Handbook and of course the EU Green Bond Standard moving ever closer to finalisation. Federico Pezzolato, Miguel Cunha, Viola Lutz, Mélanie Comble, Miguel Cunha, sustainable finance business sustainable finance business sustainable finance business head of investor consulting head of second party opinion development manager for Americas at ISS Corporate development manager development manager climate operations Solutions: While we were excited to conduct the first ever second party opinion (SPO) based on the SLBPs for Brazilian EF: How do these new guidelines complement the not put sufficient emphasis on the overall strategy of a company. pulp and paper giant, Suzano, we can also relate to issuers existing option of a use of proceeds issuance? A lack of insight on that point means that at times investors have who feel overwhelmed trying to navigate the rapidly evolving Viola Lutz, head of investor climate consulting at ISS no additional information as to the general direction a company sustainable finance market. The prevailing two questions going ESG: Use of proceed (UoP) bonds introduced a great degree is taking. forward will be, firstly, how issuers can select the best option of transparency on the activities financed through a transaction This concern has been mitigated somewhat by the fact that, to finance their individual sustainability strategy and, secondly, and the environmental and social objectives they address. While in practice, most issuers nowadays give ample information on how these new labelled bond types can help make the real that is correct with respect to the financed projects, a challenge their overall sustainability plans and characteristics; however, economy more sustainable. that has been brought up over the past years is that UoP bonds do the UoP structure following ICMA’s Green Bond Principles www.environmental-finance.com 15
Sustainable Bonds Insight
(GBP) lacks a formal requirement in that respect, since the
GBPs encourage only issuers to position the bond issuance in
their overreaching strategy. Upstream activities COMPANY’S OWN Downstream activities
While it has not yet been fully finalised, the EU Green Bond OPERATIONS & ACTIVITIES
Standard is addressing this information gap by explicitly asking Green and social projects
issuers to provide a rationale for issuance and disclosure on how and activities
the financed UoP categories impact their business model.
Transitional projects and Focus of
Mélanie Comble, head of second party opinion operations activities UoP bonds
at ISS ESG: Both the SLBPs and the CTF Handbook confirm
the trend of putting a strong emphasis on issuers’ strategies as
Potential
well. For example, a core focus of SLB issuances is to select focus of
environmental, social and governance (ESG) KPIs material to Value chain SLB bonds
the issuer’s business model and set associated targets that are
ambitious compared with the past performance of the company,
but also with sector peers and international targets such as the Figure 1: Potential focus of use of proceeds and sustainability-linked bonds
Paris Climate Agreement.
The commitment to achieve the targets is tied to the bond’s Let’s take the example of a transport company’s climate MCu: We are already seeing issuances from a broader set of
coupon, reinforcing the level of commitment. Interestingly, if ambition and how to make that visible via a sustainable debt sectors, such as the cement and paper and packaging industry.
a target is both material and ambitious, it naturally implies the issuance. A UoP bond can highlight projects such as replacing This is crucial.
implementation of sustainable actions across a significant share old vehicles with electric ones in the company’s own fleet and Continuing with the example of the cement industry, it
of the issuer’s operations and business segments. SLB issuances thus address emissions from its own operation. A SLB bond becomes apparent that, according to commonly used Paris
thus have the potential to have broader effects on the way a could allow a company to set a broader objective, targeting Climate Goal scenarios, this industry will be part of the economy
company conducts business. emissions along its value-chain as well by supporting efforts in 2050. To achieve the transition to a carbon-neutral world, the
In the case of the CTF Handbook, the strategy of an issuer from its contractors to likewise switch to cleaner alternatives. negative environmental impacts of such industries must hence be
to shift towards being Paris Climate Goal-aligned takes centre reduced to the lowest level possible. The SLB structure allowed
stage. Here again, the company’s impact across all its operations EF: Where does the CTF Handbook fit into all of this? LafargeHolcim, for example, to raise capital tied to a Paris-
is impacted and at the core of the transaction. MCo: The CTF Handbook sets out guidelines for issuers aligned commitment of reduction of greenhouse gas (GHG)
to effectively demonstrate and communicate their transition emissions intensity on its entire business model. SLBs are not
EF: How can issuers effectively leverage those new strategy and shows how to issue financing instruments that will only expanding the tool kit of issuers for sustainable financing,
guidance documents and financing options? help advance their strategy. The focus is on transition towards they are also allowing new sectors to access sustainable investors
VL: Crucially, the new issuance options that the SLBPs and aligning with the Paris Agreement and is of particular relevance and funding opportunities. So, in the coming years, we are
the CTF Handbook represent give issuers the opportunity to to issuers that are in difficult to abate sectors. The benefit of the expecting to see a continued opening of the market to a broader
address a wider scope of their business instead of focusing just Handbook is that it is flexible in terms of the bond structure group of issuers and the introduction of KPIs covering a wider
on specific activities. Figure 1 shows that, with UoP bonds, you apply it to. As such, it can be used by issuers to showcase range of topics.
an issuer can predominantly raise funding for the greening of their strategy on climate change both in the context of UoP FP: It is also important to note that, in 2020, UoP bonds were
its own products, services and activities portfolio or highlight bonds and SLBs as illustrated in Figure 2. a critical tool for raising capital to address pressing social issues,
its social dimension. A SLB structure allows an issuer to also all of which came during an unprecedented global health crisis.
address its operations and processes, including upstream and EF: What trends do you see for 2021 based on those new Social bond issuances surged to $140 billion in 2020, up an
downstream activities via the selection of appropriate KPIs. options for issuers? astonishing 778% compared with the previous year. UoP bonds
16 www.environmental-finance.comSustainable Bonds Insight
Applicable guidelines their benefits and improvement options has always been very
(cumulative) What is the underlying approach? dynamic in the sustainability bond market.
By way of background, ISS Corporate Solutions (ICS) works in
Allocating proceeds to green and/or social projects Achieving a forward-looking sustainability target collaboration with ISS ESG, the responsible investment arm of Institutional
Shareholder Services, as the distributor of SPOs.While the SPOs are sold
and distributed by ICS, the analytical work to prepare and issue SPOs is
What is the topical focus? What is the topical focus? performed by ISS ESG.
Social & Environmental Social & Environmental
Climate Change Case study one: LafargeHolcim
(excl. climate) (excl. climate)
Why did you decide to issue a sustainability-linked bond?
No No Leila Sassi, financing and capital markets manager at
Focus on credibility of climate- LafargeHolcim: The issuance of our sustainability-linked bond
change related transition? offered us the great opportunity to link our funding with our
sustainability strategy particularly on climate change. Beyond
Yes the target we have set by 2030 to decrease our CO2 emissions,
we wanted to give additional comfort to investors that we are
ICMA Transition Finance committed to reach this target by all means.
Handbook
What was the biggest challenge in the process?
LS: Compared to a traditional bond, the sustainability-linked
Alignment with EU Green Bond Standard? bond has additional requirements such as a financing framework
which follows the guidelines provided by the International
No Yes Capital Markets Association. Various teams worked together to
make it happen, strengthening cross-functional collaboration
ICMA Green, Social Usability Guideline across the company.
& Sustainability Bond for EU Green Bond ICMA Sustainability Linked-Bond Principles
Principles Standard
Use of proceed bond Sustainability-linked bond Case study two: Suzano
Why did you decide to issue a sustainability-linked bond?
Cristiano Oliveira, sustainability executive manager at
Figure 2: Key considerations for defining applicable market guidelines for sustainable debt issuance Suzano: We decided to issue a SLB to further integrate
sustainability into our business in order to drive environmental
performance where we have the ability to effect positive change.
will continue to grow and be a crucial part of the market. range of industrial processes such as in the chemicals sector. Through our issuance, we commit to specific environmental
One potential new KPI we may see in 2021 concerns issuances outcomes with skin-in-the game.
EF: What topics are you especially curious about in the linked not only to social or environmental indicators, but also to
What was the biggest challenge in the process?
future of the sustainability debt market? governance metrics. CO: The biggest challenge lies in the fact that it is a new
MCo: There are a number of emerging topics we are closely VL: And, of course, any issuances linked to the CTF Handbook. instrument in the market, and the short period of time that there
following as we enter the new year. Regarding new technologies, It is a highly relevant guidance document but as with the Green was to structure it. Suzano was only the second company in the
we speculate the potential for more issuances related to and Social Bond Principles and the SLBPs, a guideline really world to issue an SLB, and the first to issue according to ICMA’s
hydrogen or carbon capture, utilisation and storage as well as comes to life once it is used repeatedly for transactions in the SLB Principles and with a second party opinion, so there was
little in terms of reference. Everything we did was new.
efforts relating to increasing the emission efficiency in a broader market. Market participants’ critical discussion of issuances,
www.environmental-finance.com 17Sustainable Bonds Insight Annual issuance
The green bond market grew modestly in 2020 but total issuance almost doubled as social and sustainability
bonds grew rapidly in response to the Covid-19 pandemic. The average tenor of bonds shortened in 2020 while the
average value of bonds issued continued its upward trajectory.
700,000 600 14
600,000 12
500
500,000 10
400
Value ($M)
Value ($M)
400,000 8
300
300,000 6
200
200,000 4
100 2
100,000
0 0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
Green bonds Sustainability bonds Average dollar value ($M)
Social bonds Sustainability-linked bonds Average tenor
*Average dollar value and tenor excluding Fannie Mae
18 www.bonddata.orgMonthly issuance Sustainable Bonds Insight
Monthly issuance value of green, social, sustainability Monthly volume of issuance of green, social,
and sustainability-linked bonds in 2020 sustainability and sustainability-linked bonds in 2020
120,000 300
100,000 250
Number of bonds
80,000 200
Value ($M)
60,000 150
40,000 100
20,000 50
0 0
y
ry
ch
ril
ay
ne
ly
st
r
er
r
r
y
ry
ch
ril
ay
ne
ly
st
r
er
r
r
be
be
be
be
be
be
ar
ar
Ju
Ju
Ap
Ap
gu
gu
ua
ua
ob
ob
M
M
ar
ar
Ju
Ju
nu
nu
em
m
m
em
m
m
br
br
M
Au
M
Au
ct
ct
ve
ce
ve
ce
Ja
Ja
Fe
Fe
pt
pt
O
O
No
No
De
De
Se
Se
Green bonds Sustainability bonds Green bonds Sustainability bonds
Social bonds Sustainability-linked bonds Social bonds Sustainability-linked bonds
www.bonddata.org 19Sustainable Bonds Insight Issuer type
Breakdown of issuers of green, social and sustainability bonds
Green bonds Social bonds Sustainability bonds
Supranational Agency
5% 6.9%
Agency
Sovereign 16.9%
11.7% Agency Corporate
36% 12.4%
Municipal Supranational
6.6% 40.7% Financial
Supranational
59% Institution
2020 2020 2020 9.9%
Financial Municipal
Institution Corporate 10%
16.9% Corporate
42.9%
Sovereign 5.2% Sovereign
2.5% 1.9%
Municipal Financial Institution
3.2% 12.3%
Supranational
Supranational Supranational Agency
7.3%
6.4% Agency 11.6% 12.4%
Sovereign 19.9% Municipal
4.7% Sovereign
8.3%
1.2%
Municipal
5.9% Agency
40.4% Municipal Corporate
2019 2019 19.6% 2019 22.7%
Financial
Institution
36%
Financial
Institution Corporate
24.1% 35.5%
Corporate Financial Institution
11.6% 32.5%
20 www.bonddata.orgUse of Proceeds Sustainable Bonds Insight
Use of proceeds breakdown of bonds issued in 2020 by value Percentage breakdowns
Terrestrial and aquatic biodiversity
Value ($M) conservation (0.9%); Eco-efficient
products production technologies and
0 20,000 40,000 60,000 80,000 Sustainable management of
processes (0.8%); Food security (0.5%);
living natural resources (2.2%)
General Corporate Purposes (0.2%);
Affordable basic infrastructure GB4 – Clean transportation (0.01%);
Renewable energy 82,881 (2.5%) GB2 – Pollution Prevention and Control
Climate Change Adaptation (0.01%); GB3 – Resource Conservation
Green buildings 65,802 (2.6%) and Recycling (0%)
Pollution prevention
Access to essential services 56,714 and control (2.6%) Renewable Energy (14.9%)
Sustainable Water
Clean transportation 56,502 Management (3.5%)
Affordable housing Green buildings
Covid-19 response (4.8%)
52,726 Socioeconomic
(11.8%)
Employment generation including
through the potential effect of SME 48,791
advancement and
empowerment (6.1%) Value
financing and microfinance
Access to
Energy efficiency 43,565 Energy Efficiency essential services
(7.8%) (10.2%)
Socioeconomic advancement
and empowerment 33,929 Employment generation
including through the potential
Affordable housing 26,842 effect of SME financing and
Clean Transportation
(10.1%)
microfinance (8.8%) Covid-19 response
Sustainable water
management 19,207 (9.5%)
Pollution prevention
and control 14,582 Food security (0.8%) General Corporate Purposes (0.03%);
Eco-efficient products production GB4 – Clean transportation (0.03%);
Climate change adaptation 14,574 technologies and processes (1.8%) GB2 – Pollution Prevention and Control
Terrestrial and aquatic biodiversity (0.03%); GB3 – Resource Conservation
Affordable basic and Recycling (0.06%)
infrastructure 13,841 conservation (1.4%)
Sustainable management of living
Sustainable management of natural resources (3.9%) Renewable Energy (14.3%)
living natural resources 12,426 Affordable basic
infrastructure (2.4%)
Terrestrial and aquatic
biodiversity conservation 4,955 Climate Change
Adaptation (3.7%)
Eco-efficient products production Pollution prevention
technologies and processes 4,471 and control (5.1%)
Sustainable Water
Management (5.6%)
Food security 2,710 Affordable housing Volume
(3.6%) Green buildings
General corporate purposes 1,000 Socioeconomic (27.7%)
advancement and
empowerment (2.7%)
GB4 – Clean transportation 58 Energy Efficiency (10.9%)
GB2 – Pollution prevention
and control 58 Total: Employment generation including
Access to essential services
(3.4%)
through the potential effect of SME
GB3 – Resource conservation $555,860.8M Clean Transportation (7.8%)
and recycling 26 financing and microfinance (3%)
Covid-19 response (1.7%)
www.bonddata.org 21You can also read
