Sustainable Bond Market

London Stock Exchange’s dedicated Sustainable Bond Market (SBM) champions innovative issuers in sustainable finance, and improves access, flexibility and transparency for investors.

As the demand from investors and companies to manage climate risks and create impact becomes ever more important, our expanded SBM offers a wide range of opportunities for green, sustainable and social bonds, in addition to bonds from green economy issuers and most recently sustainability-linked bonds.

The depth and breadth of London's markets provides a deep pool of capital to help lead the transition to a sustainable and low-carbon economy. LSEG provides guidance and support to issuers through variety of channels, including the Issuer Services platform and other Group services.

Access a deep pool of capital
Sustainable finance debt instruments are an ideal way for business to tap into the huge $100 trillion pool of private capital managed by global institutional fixed-income investors.
Send a clear sustainable signal to the market
Issuing a sustainable finance debt instrument provides a signal that your business has a meaningful sustainability strategy, has identified material environmental risks and opportunities that the business faces and investing to deliver on them.
Build a stronger sustainability dialogue
The extra disclosure required to issue a sustainable debt instrument creates greater levels of dialogue between borrowers and lenders, improving your relationship with investors.
Motivate your people on sustainability
The process of issuing a sustainable finance debt instrument can galvanise management and staff around the concept of sustainability and the role of the business in delivering a sustainable future.

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Use of proceeds classification
Our Use of Proceeds Classification is for debt securities that have committed their use of proceeds to financing new and existing projects or activities with clear environmental or social benefits.

Green
Proceeds are used to finance new or existing green projects with clear environmental benefits.
Social
Proceeds are used to finance new or existing social projects with clear social benefits.
Sustainability
Proceeds are used to finance any combination of new or existing green and social projects.

Issuer-level classification
Our Issuer Level Classification is for debt securities that are issued by an entity whose core business activity is related to the provision of green products and services and/or where the sustainable nature of the instrument is not based on a distinct and pre-defined use of proceeds.

Sustainability-linked bonds
Forward-looking performance-based instruments where the issuer is committing to future improvements in sustainability outcomes within a predefined timeline, in accordance with ICMA or relevant international standards.
Green revenues
Issuers demonstrating they have the Green Economy Mark and have greater than or equal to 90% of revenues derived from green revenues.

Transition classification
Our Transition Classifications is for debt securities issued by an entity for climate transition and/or just-transition-related purposes.

Climate transition
Instrument issued by an entity for climate transition purposes in accordance with the ICMA Climate Transition Finance Handbook.
Just transition
Instrument issued by an entity for just-transition related purposes. The criteria for these issuances will be determined by us.

Together, these classifications provide a structured framework for understanding how sustainable bonds are defined, how proceeds are applied, and how issuers support environmental and social objectives across different stages of sustainability.

Further information on why you should choose London’s SBM.