WSJ: Corporate Bond Issuance Is Booming—but Not Sustainability-Linked Bonds
March 13, 2024 Despite a general boom in corporate bond issuance, the market for sustainability-linked bonds, which adjust interest rates based on ESG goal achievement, has significantly declined from its pandemic peak. Global issuance of these bonds dropped 51% early in 2024, contrasting with surges in traditional and green bond issuances. The SEC’s new climate-disclosure rule, mandating greenhouse-gas emissions reporting, may eventually encourage more sustainability-linked bonds, but challenges remain in setting and meeting ambitious ESG targets.