Sustainability-linked bonds falter amid credibility concerns
Issuance of debt linked to companies’ climate promises has fallen but green bond market proves robust.
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In an era of higher scrutiny for sustainable investing products, green bonds are proving to be the tried-and-tested sustainability choice for fixed income investors as more esoteric offerings falter.
Global green bond issuance has remained steady — the total in the first four months of this year was $232bn, equal to the issuance in the same period in 2023, according to a report from Morgan Stanley.
However, in the case of sustainability-linked bonds — a newer product that has come under fire from environmentalists — issuance was down 51 per cent in the first four months, compared with 2023, to just $12.5bn.
