Introduction and history

The handbook outlines a harmonised framework to support transparent, comparable impact reporting for Social Bonds. Social Bonds finance projects with positive social outcomes for defined target populations, aligned with the Social Bond Principles (SBP). The document highlights increasing demand for social investment to address global development challenges and SDG objectives, noting that consistent reporting is essential to maintain market integrity.

It summarises work by the Social Bond and Impact Reporting Working Groups to identify indicators that are compatible with varied internal processes for eligibility assessment and proceeds management. The framework introduces core and supplementary metrics and provides templates that issuers may adapt. Currently, detailed sector guidance is focused on affordable housing, with further categories to be developed. The handbook notes that reporting practices must accommodate both project-level and portfolio-level allocation approaches and acknowledges complementary initiatives across the market.

Core principles for reporting

Issuers are required to report annually on both allocation of proceeds and expected social impacts, using quantitative indicators where feasible. Core industry metrics are encouraged for comparability.

Issuers should clearly define the period and process for adding or removing projects from reports. Projects may be added once eligibility is confirmed or disbursements occur, and should be removed if negative impact risks arise, loans are repaid, or the issuer withdraws eligibility.

Reports should state the total signed amount and the proceeds allocated, with optional disclosure on portfolio seasoning or project stage. Issuers are encouraged to maintain formal internal processes for allocating proceeds and to explain verification mechanisms.

Reporting may occur on a bond-by-bond or portfolio basis. Issuers should identify project categories, alignment with social or development objectives such as SDGs, and provide detail on target populations. This includes contextual justification, definitions, income thresholds, or reference to national statistics.

For project-level allocation, issuers should disclose individual project impacts and total project size, and may aggregate pro-rated impacts for portfolio reporting. For portfolio-level financing, issuers may report both total and pro-rated impacts, particularly where financing is catalytic.

Impact reporting should outline expected annual or lifetime results based on ex-ante estimates and ex-post outcomes where available. Methods used should follow recognised standards and ideally be externally reviewed. Assumptions must be transparent, and issuers encouraged to present year-on-year trends and compare ex-ante with ex-post results.

The document warns against complex undisclosed recalculations and highlights that comparability is limited due to differing country contexts, methodologies, and cost structures.

Issuers should explain treatment of partially eligible projects, disclosing how social bond proceeds relate to eligible components and estimating the overall project impact, including risks and mitigation efforts. Both quantitative and qualitative indicators are recommended, supplemented where data gaps exist.

Disbursement timing, project context, risk management, and negative effects should be included.

Sector specific guidance and reporting metrics

Affordable housing

Affordable housing includes development, acquisition, upgrading, refinancing, or housing finance targeted to defined population groups. Affordability can be based on income criteria, demographic criteria, or local regulation. Disclosure of definitions and target population characteristics is recommended.

Applicable housing types include social rentals, low-cost ownership, shared ownership, subsidised housing, mixed-use developments, and temporary or permanent accommodation.

Issuers should disclose the type of intervention and disaggregate indicators for groups such as low-income households, women, people with disabilities, older persons, or displaced populations. Affordable housing projects may intersect with green or other social objectives.

Core indicators include:

Number of people reached.

Number of affordable dwellings constructed, improved, rented, financed, or acquired.

Number of outstanding affordable housing loans, grants, or subsidies.

Other indicators relate to affordability ratios, long-term tenancy stability, home ownership rates, housing quality, and supportive services accessed. Methodology for converting household metrics to people should be disclosed.

Annex I – Impact confirmation on target population

Impact confirmation gathers data directly from target populations to test assumptions and reduce risks of impact-washing. It is voluntary and may occur pre-issuance or post-issuance. Methods may include sampling, digital surveys, and periodic assessments, with optional third-party involvement.

Annex II – Illustrative summary template for docial project-by-project report

The handbook provides a template covering project category, eligibility, allocation, financing share, lifetime, and social indicators for consistent reporting.

Annex III – Working list of sample social indicators

The annex outlines sample output, outcome, and impact indicators across sectors (health, education, financial services, employment, food security, infrastructure, and housing). It emphasises distinguishing between metrics types, using disaggregated data for target populations, and adapting indicators where impact occurs beyond the bond’s duration.