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The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

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The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

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Featured Pathways

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The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Ready to get started?

PLANS & MEMBERSHIP

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

More featured content

Ready to get started?

Ready to get started?

Sustainability Linked Bond Principles

Sustainability Linked Bond Principles

Stephanie Sfakianos

35 years: Sustainable finance & banking

In this video, Stephanie takes us through the issuance for early 2021. She further explains breakdown between the various categories of sustainable bonds and also reports on a new frontier in sustainable finance and how market participants are responding.

In this video, Stephanie takes us through the issuance for early 2021. She further explains breakdown between the various categories of sustainable bonds and also reports on a new frontier in sustainable finance and how market participants are responding.

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Sustainability Linked Bond Principles

16 mins 11 secs

Overview

Issuance volumes in sustainable capital markets are continuing to show impressive growth. Total issuance for the year to 5th March amounts to US$146bn equivalent. This would result in annualised outstandings for year-end being almost double the 2020 volume.

Key learning objectives:

  • Understand the breakdown between the categories of sustainable bonds

  • Understand the new frontier in sustainable finance and how market participants are responding

  • Understand Sustainability-linked bonds and it’s core components

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Summary

Breakdown between the categories of sustainable bonds

46% of issuance so far this year comprised green bonds, with a further 34% of social bonds and 15% sustainability bonds. These data can be analysed in a few ways. The first noteworthy point is that green bonds have their lowest ever share of overall market activity.  Social bond market has been particularly active in Europe, with the European Stability Mechanism issuing a EUR 2 billion social bond, the EU issuing a further EUR 9 billion under its Support to mitigate Unemployment Risks in an Emergency, or SURE programme in March, and the French government agencies particularly active: CADES issuing EUR 4bn, USD 5bn and EUR 5 billion in January February and March respectively, and Unedic issuing EUR 3bn.  The EU is set to raise a further 13 billion euros ($15.43 billion) from the sale of five- and 25-year social bonds to fund its SURE unemployment scheme via a syndicate of banks at the end of March 2021.

Understand new frontier in sustainable finance

A second way to analyse the data in the chart is the split between the “use of proceeds” model and the newer Sustainability linked bonds, or SLB, with an issuer-level sustainability target. Use of Proceeds bonds account for over 95% of issuance so far this year.

What are Sustainability-linked bonds?

Sustainability-linked bonds (“SLBs”) are any type of bond instrument for which the financial and/or structural characteristics (i.e., coupon, maturity, repayment amount) can vary depending on whether the issuer achieves predefined Sustainability / Environmental and/or Social and/or Governance (ESG) objectives within a predefined timeline.

What are the core components of Sustainability-linked bonds?

  • Selection of Key Performance Indicators (KPIs)
  • Calibration of Sustainability Performance Targets (SPTs)
  • Bond characteristics
  • Reporting
  • Verification

Natixis survey: Assessing appetite for sustainability-linked bonds

Natixis surveyed 40 global investment managers, with some US$20 trillion in assets under management, on their appetite for SLBs.  They found that 88% of respondents either were, or were planning to, buy these instruments, rising to 94% for ESG specialists.  It is perhaps telling that the lowest demand, at 80%, came from green specialist investors.  

 

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Stephanie Sfakianos

Stephanie Sfakianos

Stephanie's long career in the financial services industry in London culminated around the past seven years in the field of sustainable finance. She has now left the banking industry, but has continued to apply her sustainable finance expertise through her work with ICMA and the International Standards Organisation.

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