SDG Impact Standards for SDG Bonds
Who’s behind it? – UN Development Programme (UNDP)
How can it help? – The SDG Impact Standards for SDG Bonds are developed to guide private equity fund managers and bond issuers in directing activities toward achieving the SDGs. These Standards are available for comment and consultation through 31 July 2020. Another shorter period of public consultation will follow, after the Standards have been revised to account for initial feedback.
The Standards apply to defined SDG Bond Programs, including:
- Use-of-Proceeds bond programs issued under the International Capital Markets Association’s (ICMA) Green/ Social/ Sustainability (GSS) Bond Principles and Voluntary Process Guidelines for Issuing GSS Use-of-Proceeds Bonds, certified by the Climate Bonds Institute, or issued under the proposed EU Green Bond Standard.
- SDG-linked bonds where the coupon payable by the bond issuer is linked to achieving targets against specific SDG outcomes.
The Standards are the latest contribution of market-focused tools from SDG Impact, a flagship initiative of UNDP’s Finance Sector Hub, focused on accelerating investment to achieve the SDGs.