Publication

Sustainability-Linked Finance—Mobilizing Capital for Sustainability in Emerging Markets

Feb 21, 2022

Sustainability-linked finance is designed to incentivize the borrower’s achievement of environmental, social, or governance targets through pricing incentives. Launched in 2017, it has now become the fastest-growing sustainable finance instrument, with over $809 billion issued to date in sustainability-linked loans and bonds. Yet these instruments are still nascent in emerging markets, which represent only 5 percent of total issuance to date. This note shares examples of recent sustainability-linked financing, including several involving IFC in various roles, to highlight how investors can utilize these new instruments in emerging markets and mitigate greenwashing risks.

Topics

Community Investment and Partnerships Gender Health Impacts Human Rights and Security Indigenous Peoples Local Supplier Development Stakeholder Engagement Sustainable Livelihoods and Skills Building Water and Communities

Return to Search

Add to Briefcase

Sustainability-Linked Finance—Mobilizing Capital for Sustainability in Emerging Markets

Regions

Africa
East Asia and Pacific
Europe and Central Asia
Latin America and Caribbean
Middle East and North Africa
North America
South Asia

Sectors

Agribusiness
Forestry
Infrastructure
Natural Resources
Other

Resource Types

Publication

Related Content

An Investor’s Perspective: Long-Term Risk Assessment and Value Drivers for Mining Investors with Varying Time Horizons

An Investor’s Perspective: Long-Term Risk Assessment and Value Drivers for Mining Investors with Varying Time Horizons

Community Investment and Partnerships

Gender

Health Impacts

Human Rights and Security

Indigenous Peoples

Local Supplier Development

Stakeholder Engagement

Sustainable Livelihoods and Skills Building

Water and Communities

Water Stewardship Framework

Water Stewardship Framework

Community Investment and Partnerships

Gender

Health Impacts

Human Rights and Security

Indigenous Peoples

Local Supplier Development

Stakeholder Engagement

Sustainable Livelihoods and Skills Building

Water and Communities

Allin Kausay! 9 Key Ideas to Live Without Violence

Allin Kausay! 9 Key Ideas to Live Without Violence

Community Investment and Partnerships

Gender

Health Impacts

Human Rights and Security

Indigenous Peoples

Local Supplier Development

Stakeholder Engagement

Sustainable Livelihoods and Skills Building

Water and Communities

Voluntary Responsible Mining Initiatives

Voluntary Responsible Mining Initiatives

Community Investment and Partnerships

Gender

Health Impacts

Human Rights and Security

Indigenous Peoples

Local Supplier Development

Stakeholder Engagement

Sustainable Livelihoods and Skills Building

Water and Communities