The Sustainability-Linked Bond Handbook is a practitioner-focused guide to sustainability-linked bonds (SLBs) developed by the Anthropocene Fixed Income Institute. It provides an overview of how these instruments function, including pricing, structure and market dynamics. The resource is relevant for finance professionals seeking to understand how SLBs can be integrated into fixed income strategies and used to support sustainability objectives.
Organisation behind the resource
The resource is developed by the Anthropocene Fixed Income Institute (AFII), a non-profit research organisation focused on supporting fixed income markets in driving the climate transition. AFII produces research, analytical tools and guidance for investors and issuers, drawing on expertise from market practitioners such as portfolio managers and analysts.
What the resource does
- Provides a structured overview of sustainability-linked bonds, including their design and market role.
- Explains pricing approaches, including option-based models and empirical evidence.
- Analyses SLBs as portfolio tools, including their use for return generation and risk management.
- Examines sustainability performance targets, including risks such as weak targets and greenwashing.
- Includes over 40 case studies of real and potential bond issuances from issuer and investor perspectives.
- Offers downloadable content (PDF or online flipbook) for further analysis and reference.
Target audience
The primary audience is fixed income market participants, including portfolio managers, traders, credit analysts and investment strategists. The resource may also be relevant to researchers, policymakers and other stakeholders interested in sustainable finance instruments.
Relevance to finance professionals
- Risk assessment: Evaluates sustainability-linked risks, including the probability of issuers meeting performance targets and associated credit implications.
- ESG analysis: Links financial characteristics of bonds to sustainability performance metrics, supporting ESG integration in fixed income portfolios.
- Market/commodity insights: Provides insights into the evolving SLB market, including issuance trends and structural variations.
- Investment context: Demonstrates how SLBs can be used for alpha generation, sustainability-linked risk hedging and aligning portfolios with transition objectives.
