A $319 Billion Corner of ESG Bond Market Faces ‘Slow Demise’

Sustainability-linked bond deals have tumbled this year, prompting bankers and investors to question whether the $319 billion market will ever regain favor.

Companies and government bodies have so far raised $37.6 billion via the instruments, known as SLBs, about 46% lower than in all of 2023, according to data compiled by Bloomberg Intelligence. The product suffered the most in the US amid an ESG backlash, and Donald Trump’s anti-climate agenda will likely continue to weigh on fundraising.