Stockholm (NordSIP) – The Climate Bonds Initiative has announced the expansion of its data analysis capabilities with the launch of a Social and Sustainability Bond Database (SnS DB), to complement the existing Climate Bonds Green Bonds Database.
The dedicated SnS DB will provide investors and policymakers with access to analysis of the labelled sustainability and social-themed bond issuance.
Social and Sustainability Bonds Reach US$1trillion
The move by the CBI makes sense given the growth in the social and sustainability bond market segments. According to the CBI’s Sustainable Debt Global State of the Market 2021, the market for Green, Sustainability, Social, SLB and Transition bonds had reached approximately US$2.8 trillion by the end of 2021. Green bonds were the leading segment of sustainable fixed-income markets, with 2,045 issuers from 80 countries having brought 9,886 instruments to the market, worth US$1.6 trillion in 47 currencies.
Non-green sustainable fixed income represented the remaining US$1.2 trillion, most of which in Social and sustainability bonds. Social bonds came next, with 861 issuers from 44 countries bringing 3,471 instruments to the market, worth US$538 billion in 33currencies. Sustainability bonds came third, with 425 issuers from 51 countries bringing 2,323 instruments to the market, worth US$520.5 billion in 38 currencies. Second-to-last, 225 issuers from 37 countries have brought 317 Sustainability-linked bonds to the market, worth US$135 billion in 16currencies. Last but not least, 15 issuers from 12 countries have brought 32 Transition bonds to the market, worth US$9.6 billion in 7 currencies.
SnS Database Methodology
The approach taken in this methodology focuses on the demonstration of ambition from social and sustainability bond issuers.Although the selection process focuses mainly on the use of proceeds, the classification process is more complex.
The classification process follows a three-step approach. The first step focuses on the identification of labelled social and sustainability debt. This is followed by an analysis of the use of proceeds. Last but not least, the classification process focuses on key information and SDG mapping.
Climate Bonds will review the methodology at least semi-annually, and updates will be made accordingly.
