European-based sustainable bond issuers have the best impact reporting track record, with issuers in the Asian and Americas lagging some way behind, research by Environmental Finance Data has revealed.
Some 93% of Europe-based bond issuers publish an impact report – featuring data specific to sustainable bonds – at some point after issuance, according to the data.
In comparison, just 56% of issuers in the Americas published an impact report, with the figure dragged down by US municipal bond issuers.
And just 51% of Asian issuers have produced an impact report, hampered by Chinese issuers subject to less stringent reporting requirements, according to Environmental Finance Data.
The research is based on the impact reports published by the 450 largest issuers by issuance volume. A 'recent' impact report has been published within the past 18 months, while an 'old' report includes those published by an active issuer over 18 months ago .
Under the ICMA's Green Bond Principles and Social Bond Principles – to which more than 90% of issuers are aligned – issuers should "make, and keep, readily available up-to-date information on the use of proceeds to be renewed annually until full allocation".
Financial institutions have the best impact reporting track record by issuer type, with just over 80% producing reports "driven by stricter data collection and reporting practices in the sector", the report noted.
Municipal issuers have the worst impact reporting track record among all issuer types, with just under 40% producing one. Although Environmental Finance Data noted that there are a large volume of social bonds from municipal issuers with more challenging impact reporting requirements, and certain long-term municipal projects can create long reporting lags for project completion.
The full report on impact reporting can be downloaded here.
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