Sustainability-Linked Finance : Mobilizing Capital for Sustainability in Emerging Markets
Sustainability-linked finance is designed to incentivize the borrower’s achievement of environmental, social, or governance targets through pricing incentives. Launched in 2017, it has now become the fastest-growing sustainable finance instrument,...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/444741642698832833/Sustainability-Linked-Finance-Mobilizing-Capital-for-Sustainability-in-Emerging-Markets http://hdl.handle.net/10986/36872 |
| Summary: | Sustainability-linked finance is
designed to incentivize the borrower’s achievement of
environmental, social, or governance targets through pricing
incentives. Launched in 2017, it has now become the
fastest-growing sustainable finance instrument, with over
$809 billion issued to date in sustainability-linked loans
and bonds. Yet these instruments are still nascent in
emerging markets, which represent only 5 percent of total
issuance to date. This note shares examples of recent
sustainability-linked financing, including several involving
IFC in various roles, to highlight how investors can utilize
these new instruments in emerging markets and mitigate
greenwashing risks |
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