Back in the trend: Companies are increasingly relying on sustainable bonds!

Back in the trend: Companies are increasingly relying on sustainable bonds!

In the financial world there is currently an exciting comeback: the sustainability bound bonds, also known as sustainability-link bonds (SLBS). According to Option Finance , the market for SLBs has changed in recent years, and the current trends give rise to hope. After a decline in the amounts collected in 2024, many companies in France are now available to emit new SLBs.

The latest emissions of companies such as eramet, spie and carrrefour clearly show that French companies continue to actively work in the field of public bonds. While Eramet took up 100 million euros on May 21 by increasing an existing bond, Spie collected 600 million euros for five years just a day earlier. Carrefour joined the trend and launched 500 million euros for four years. All three companies have issued SLBs that are associated with a mechanism to increase the interest rate if their sustainability goals are not achieved.

climate change as a driver

But why are SLBs so fascinating? Companies have to adapt to climate change and decarbonize their activities. The climate performance of companies defines how strongly they can reduce their greenhouse gas emissions (THG). These emissions are divided into three categories: SCOPE 1 refers to direct emissions, SCOPE 2 to emissions from energy consumption and SCOPE 3 to indirect emissions. The need to adapt is different from sector to sector, and the consequences of neglect can be in the long run can represent financial risks, such as the Banque de france explained.

The financial obligation from SLBs promote the commitment of issuers in relation to the reduction of THG emissions, although the measures actually implemented and the relevance of the set goals are often difficult to evaluate. Even if the financial penalties in the event of non -fulfillment are relatively low, companies that emit SLBs show a strong interest in the transition towards sustainable practices.

regulation and transparency

Important guidelines come from the International Capital Market Association (ICMA), which with their Sustainability-Linked Bond Principles (SLBP) Structural features, Operations and reporting for SLBs. These principles that are aimed at all types of issuers offer clear instructions for the selection of performance indicators (KPIS) and also include a current register of this KPIS. The 2024 version is intended to help create further clarity for the market participants.

On the way to more transparency, the SLBP call for issuers to disclose information about their sustainability strategies in order to promote compliance with the principles. Such a measure could strengthen the market for SLBs and help the issuers to communicate their commitment to sustainable development more clearly.

Overall, it should be noted that the return of the SLBs both companies and investors: Inside, offers the opportunity to actively contribute to reducing greenhouse gas emissions. With the significant increase in activities in 2025, the market for SLBs could stabilize again and continue to grow. It remains exciting to observe how this trend will develop and what role the SLB practices will play in the future financial landscape.