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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.

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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

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

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

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Publication

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

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

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Related Content

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