Meaning
Understanding financial tools that drive positive environmental and social impact.Definition
A Sustainability Bond is a debt instrument where raised funds exclusively finance a combination of both green and social projects, supporting environmental and social sustainability goals.How It Works
Issuers (companies, governments) sell these bonds to investors. Proceeds are strictly allocated to specific projects like renewable energy, clean transport, affordable housing, or healthcare access.Benefits
These bonds allow investors to support impactful sustainability initiatives. Issuers benefit by attracting socially responsible investors and showcasing their commitment to global sustainability.Author
