Green and social bond principles roll out major update

Published: July 15, 2021

The International Capital Markets Association updated its Green and Social Bond Principles in June for the first time in three years, and major fixed income investors have welcomed some of the new additions to the voluntary guidelines.

ICMA updated its Green and Social Bond Principles on 10 June. Much of the wording of the four core tenants remain the same. Borrowers looking to print a green or social bond that complies with the principles still need to adhere to four main pillars – use of proceeds, process for project evaluation and selection, management of proceeds and reporting. 

However, the 2021 update also includes two key recommendations that fall outside of the four main pillars. Issuers are now highly recommended to have a bond framework and to obtain an external review. 

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