IOSCO Sustainable Bonds Report

The International Organization of Securities Commissions (IOSCO) has published its sustainable bonds report with a press release, identifying key characteristics and growth trends for the sustainable bond market, which had surpassed USD 5.7 trillion in cumulative issuances in 2024.The report examines the characteristics of sustainable bonds, which include green, social, sustainability-linked and transition bonds. It also sets out five key considerations to assist regulators with addressing market challenges, including enhancing investor protection, ensuring fair and efficient sustainable bond markets and improving accessibility.

These are:

• To ensure greater clarity in existing or new regulatory frameworks to demonstrate alignment with internationally accepted principles and standards, support consistency, build investor confidence and support market participation.
• To establish guiding principles to help provide clarity and consistency when categorising sustainable bond types.
• To enhance transparency and disclosure requirements when it comes to reporting on issuers' progress toward sustainability-related goals or sustainability performance targets to promote public accountability.
• To promote the use of independent and credible external reviewers to mitigate conflicts of interest.
• To utilise capacity building and educational programs to increase awareness and understanding of sustainable bonds among issuers, investors, intermediaries and regulator.

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