Overview

The Guidance Handbook is a key reference document produced by the International Capital Market Association (ICMA) in collaboration with the Executive Committee of the Principles. It is a comprehensive guidance series that provides detailed interpretations and practical applications of the voluntary market standards governing the sustainable bond market. This edition, dated June 2026, consolidates and updates guidance for the Green Bond Principles (GBP), the Social Bond Principles (SBP), the Sustainability Bond Guidelines (SBG), and the Sustainability-Linked Bond Principles (SLBP). The handbook is updated regularly to reflect evolving market practices, new product developments, and official sector initiatives, ensuring it remains a primary benchmark for market participants globally.

Purpose

The primary purpose of the handbook is to provide market clarity and promote transparency, which are essential for maintaining market integrity in the rapidly evolving sustainable finance sector. It serves as a practical tool for issuers, investors, and intermediaries to understand the requirements for labelling debt instruments as green, social, or sustainability-linked. By providing a consolidated set of questions and answers, the series helps to harmonise the implementation of the Principles across different jurisdictions and asset classes. It is designed to inform the development of bond frameworks, the selection of eligible projects, and the establishment of robust reporting mechanisms, ultimately facilitating the flow of capital towards projects with measurable environmental and social benefits.

Methodology

The guidance is formulated through responses provided by the Executive Committee of the Principles, which represents a balanced distribution of investors, issuers, and underwriters. The methodology involves synthesising market feedback, technical research, and expert analysis into a structured Q&A format. The analysis is built upon the four core components required for use-of-proceeds bonds:

• Use of Proceeds
• Process for Project Evaluation and Selection
• Management of Proceeds
• Reporting

For Sustainability-Linked Bonds, the framework focuses on five core pillars: the selection of Key Performance Indicators (KPIs), the calibration of Sustainability Performance Targets (SPTs), bond characteristics, reporting, and verification. The document also incorporates complementary thematic guidance, such as the Climate Transition Finance Handbook and the Green Enabling Projects Guidance, to provide a multi-layered assessment of transition strategies and project eligibility criteria.

Use for Finance Professionals

Finance professionals can utilise this handbook to navigate the complexities of sustainable debt issuance and investment analysis. Issuers can refer to the detailed checklists and templates provided to build credible bond frameworks that meet high transparency expectations. Investment professionals can use the handbook as a benchmark to assess the alignment of prospective bond offerings with international standards, helping to mitigate the risk of greenwashing and ensuring that sustainability claims are backed by robust processes. The guidance also provides technical advice on managing unallocated proceeds, dealing with currency mismatches, and setting ambitious targets for sustainability-linked instruments. Furthermore, it offers insights into emerging areas such as Blue Bonds, Nature Bonds, and Gender Bonds, enabling professionals to stay at the forefront of market innovation and best practice.