Sustainable Debt Markets Surge As Social And Transition Financing Take Root, Report Says

NEW YORK, Jan. 27, 2021 /PRNewswire/ -- (S&P Global Ratings) -- Issuance in sustainable debt, including green, social, sustainability, and sustainability-linked bonds, rose more than 60% in 2020. We expect total issuance to surpass $700 billion by year-end 2021.

Social bonds emerged as the fastest-growing segment of the market, catapulted by the COVID-19 pandemic and growing concern about social inequities. We expect innovation within the market will continue as new types of instruments, including sustainability-linked and transition bonds, diversify how issuers and investors contribute to sustainability objectives.

We detail these findings and our forward-looking opinion in our report "Sustainable Debt Markets Surge As Social And Transition Financing Take Root," published today. In our view, issuer and investor appetite for financing climate response and other environmental objectives is strong. Issuance in the green-labeled bond market could grow close to $400 billion in 2021, after achieving a record $270 billion in 2020, according to Environmental Finance. Large economies' commitments of net-zero emissions will require significant investment, indicating dominance of green debt will continue. We believe the green use-of-proceeds model will expand to include transition finance, aiding high-carbon-emitting sectors to finance their transition into net-zero emissions business activities.

At the same time, we expect that even in a post-pandemic world, the calls for equitable, sustainable growth will continue, leading to further growth in social and sustainability bond issuance. In our view, improved transparency and reporting practices remain key to fostering credibility in the sustainable debt market.

This report does not constitute a rating action.

The reports are available to subscribers of RatingsDirect at If you are not a RatingsDirect subscriber, you may purchase copies of these reports by calling (1) 212-438-7280 or sending an e-mail to Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at Members of the media may request copies of these reports by contacting the media representative provided.

Copyright © 2021 by Standard & Poor's Financial Services LLC. All rights reserved.

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.

SOURCE S&P Global Ratings

For further information: PRIMARY CREDIT ANALYST, Lori Shapiro, CFA, New York, + 1 (212) 438 0424, or SECONDARY CONTACTS, Michael Wilkins, London, + 44 20 7176 3528, or Noemie De La Gorce, London, + 44 20 7176 9836,, Erin Boeke Burke, New York, + 1 (212) 438 1515,, or RESEARCH CONTRIBUTOR, Reshma Thomas, CRISIL Global Analytical Center, an S&P affiliate, Mumbai, or MEDIA CONTACT, Jeff Sexton, New York, + 1 (212) 438 3448