Efforts by businesses and public bodies to meet environment, social, and governance (ESG) targets drove a four-fold increase in the issuance of sustainability-linked loans and bonds last year delivering a record year for the volume of sustainable debt.
Data compiled by BloombergNEF (BNEF) for the firm’s 1H 2022 Sustainable Market Outlook report shows that total sustainable debt surpassed $1.6tr last year, more than doubling 2020’s end-of-year value.
The combined market for sustainable and social debt in 2021, meanwhile, reached a record $4tr last year.
The fastest growth for sustainability themes in debt issuance was provided by loans and bonds to help institutions meet ESG targets, including greenhouse gas emissions reductions, BNEF said. More than $530bn was issued for this purpose in 2021.
Mallory Rutigliano, a sustainable finance associate at BNEF and lead author of the report, said the market was set to keep growing as sustainability-linked debt becomes more accessible