Erste Asset Management

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Sustainability-linked bonds – an alternative to green bonds?
Sustainability-linked bonds – an alternative to green bonds?
(c) iStock

Sustainability-linked bonds – an alternative to green bonds?

Green bonds are securities that are allocated to specific energy and environmental projects and are intended to contribute to a climate-friendly transformation of the economy. According to a study by the Climate Bonds Initiative (CBI), they reached a record level of $269. 5 billion in 2020. Sustainability-Linked Bonds represent a voluntary commitment for issuers. How exactly they work is explained in our analysis.