Reported about 24 hours ago
The $319 billion sustainability-linked bond (SLB) market is facing a significant downturn, with a sharp decline in deals this year resulting in concerns over its future viability. Issuers have raised only $37.6 billion in SLBs so far, a 46% drop compared to 2023, with no new deals in the US during 2024. The market's struggles are attributed to backlash against ESG principles, regulatory pressures, and challenges in tracking performance indicators. While other segments of sustainable debt, particularly green bonds, are performing better, the outlook for SLBs remains pessimistic as scrutiny over ESG targets increases.
Source: YAHOO