IOSCO has published a Sustainable Bonds Report setting out key characteristics and trends in the sustainable bond market and outlining five considerations for jurisdictions to address market challenges, including investor protection, market fairness and efficiency, and accessibility. The report covers green, social, sustainability and sustainability-linked bonds. The report notes that 2024 sustainable bond issuance totalled USD 1.1 trillion, a 5% increase from 2023, taking cumulative issuance to more than USD 6 trillion. Its five considerations focus on clearer and internationally aligned regulatory frameworks, guiding principles for consistent categorisation of sustainable bond types, stronger transparency and disclosure on issuers’ progress against sustainability-related goals or sustainability performance targets (SPTs), greater use of independent and credible external reviewers to mitigate conflicts of interest, and capacity-building and educational programmes for market participants and regulators. IOSCO based the work on research, a member survey, engagement with its Affiliate Members Consultative Committee, and a roundtable with the OECD held during the 2024 Annual Meeting.
IOSCO 2025-05-21
IOSCO publishes Sustainable Bonds Report with five regulatory considerations as 2024 issuance reaches USD 1.1 trillion
IOSCO released a Sustainable Bonds Report highlighting key trends and challenges in the sustainable bond market, with 2024 issuance reaching USD 1.1 trillion. The report recommends clearer regulatory frameworks, consistent categorisation, enhanced transparency, use of independent reviewers, and educational initiatives. It draws on research, a member survey, and discussions with the OECD.