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TLDR:
In 2023, the London Stock Exchange had a record year for sustainable bonds, with 119 issuances raising over $79 billion. Key highlights included Heathrow Funding issuing a sustainability-linked bond and Masdar issuing green bonds. In 2024, strong activity is expected from supranationals, sovereigns, and agencies. The SBM has evolved to ensure transparency and reporting requirements are met. Collaboration with TreasurySpring has opened up short-term debt financing in the market. The launch of the ISSB standards aims to enhance sustainability reporting and attract capital flows for the transition to a low-carbon economy. Regulatory developments and partnerships with various organizations are key areas of focus for the London Stock Exchange in 2024.
Creating a holistic approach to sustainable finance
From supporting sustainable bonds to enhancing corporate disclosure, the London Stock Exchange plays a crucial role in the sustainable finance ecosystem. In 2023, a record number of issuances on the Sustainable Bond Market (SBM) raised over $79 billion, with key highlights including sustainability-linked bonds and green sukuk issuance. In 2024, strong issuance is expected from supranationals, sovereigns, and agencies, indicating investor appetite for use-of-proceeds formats. The SBM has evolved to ensure transparency and reporting requirements are met, with a focus on governance and standards. Collaborations with TreasurySpring have opened up short-term debt financing options in the market. The launch of the ISSB standards aims to provide global baseline for sustainability reporting and attract capital flows for the transition to a low-carbon economy. Regulatory developments and partnerships with organizations such as ICMA and the UN Sustainable Stock Exchanges Initiative are key focus areas for the London Stock Exchange in 2024.
