Eni closed early its €2 billion sustainability-linked bond (SLB), the first from an energy company that allows participation from retail investors, following strong demand. The group said it reflects confidence in its energy transition and financial strategy.
Global advocacy organisation Mighty Earth has filed a complaint with the US Securities and Exchange Commission (SEC) against meat producer JBS (BVMF:JBSS3) and its issue of ‘green bonds’.
Air France-KLM’s inaugural €1 billion SLB issuance is tied to a 10% reduction in its Scope 1 and Scope 3 emissions by 2025, which seems achievable, given its SBTi-approved 2030 goal of a 30% reduction. Proceeds will go towards repaying part of its €4 billion debt to the French state, which the airline has cited as a priority.
S&P Global has acquired second party opinion (SPO) provider Shades of Green, despite recent accusations of SPO greenwashing during the assessment of green, social and sustainability-linked (GSSS) bond frameworks.
Anglo American has secured a supply of desalinated water to reduce the need for freshwater in drought-stricken Chile. The agreement may appease the environmental regulator and satisfy the KPIs of its recently issued sustainability-linked bond.
Sustainability-linked bonds (SLB) issuers are under fire for funding heavily polluting investments, but the fault may lie with the wider issuing standards.
Investor focused think tank Universal Owner has published analysis warning that ambiguous net zero goals are undermining sustainability claims in the finance sector. Further analysis of poor practice for sustainability-linked bonds is also a cause for concern.
Rising interest rates and slowing economic conditions are weighing on the overall bond market, however the market for green, social, sustainable and sustainability-linked (GSSS) bonds is showing some resilience.