Sustainability KPIs in finance transactions
Sustainability-linked financing is still in its infancy, but it is already an integral part of today's financing landscape and looks set to remain into the future. Plenty of data and information exists, particularly on the KPIs of sustainability-linked financings, but it is scattered.
In this guide we have compiled, analysed and commented on all aspects of sustainability-linked financing to give you access to everything you need to know.
Top 5 components of sustainability-linked financings
Industry standards and relevant publications
In depth analysis of KPIs – Best practices in sustainable-linked financings
CMS conducted a detailed study of over 100 SLBs issued on the “public” (Eurobonds and EMTN) and “private” bond markets in Europe between January 2020 and April 2023. Such SLBs included more than 200 KPIs, which we classified into the following categories: Green, Social and Industry-specific (or a combination of these categories). Details on each category are available below.
CMS study of the KPIs used in SLBs – May 2023
* Expressed as a percentage of the relevant type of KPI in the total number of KPIs in the study.
Our analysis shows that green KPIs are the most used, far ahead of social KPIs and then industry-specific KPIs.
We conducted a separate study over the same period on SLLs. The majority of SLLs borrowers also use green KPIs (notably the reduction of greenhouse gas (GHG) emissions).
As more and more borrowers, issuers and investors adopt a sustainable finance approach, SLLs and SLBs are expected to keep flourishing, as a natural complement to green and social loans/bonds.
Our study details the KPIs used by issuers within each category of KPIs: select a category below to find out more about our in-depth analysis.
