Bonds
ESG-Linked Bond Sales Drop Most on Record on Investor Skepticism
- Issuance of sustainability-linked bonds fell 22% last year
- Fitch sees a broad range of greenwashing risks for the SLBs
Sales of SLBs also declined in 2022, after soaring almost tenfold from 2020 to 2021.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Global sales of sustainability-linked bonds plunged 22% in 2023, a record drop, as investors remain critical of the label, and more issuers risk missing their pre-determined environmental, social or governance targets.
Issuance of the so-called SLBs fell to $67.8 billion last year, the biggest full-year drop since Italian utility Enel SpA issued the first such bond in 2019, according to data compiled by Bloomberg. Sales of SLBs also declined in 2022, after soaring almost tenfold from 2020 to 2021.