Sustainability-Linked Bond Database Methodology

The Climate Bonds Initiative (CBI) establishes a screening process for sustainability-linked bonds (SLBs) to ensure they drive genuine decarbonisation. Inclusion requires eligible debt instruments to be self-labelled as SLBs and provide public disclosure of sustainability performance targets (SPTs). CBI assesses these targets against 1.5°C-aligned sectoral pathways from CBI, the Transition Pathway Initiative (TPI), the Science Based Targets Initiative (SBTi), and CRREM. Bonds are categorized as 'Fully-aligned', 'Strongly-aligned', 'Aligning', or 'not-aligned' based on their adherence to these pathways and the presence of comprehensive transition plans. The methodology specifically mandates scope 3 emission targets for companies selling fossil fuel products and airports.

• To be included in the SLB database, an instrument must meet three conditions: it must be an eligible debt instrument (such as bonds, sukuk, or Schuldscheine), it must be self-labelled as an SLB or similar term, and it must provide adequate public disclosure of its sustainability performance targets (SPTs). Sustainability-linked loans are explicitly excluded due to a lack of disclosure regarding KPIs and SPTs.
• CBI categorizes SLBs into four alignment levels based on their SPTs: 'Fully-aligned' if they meet the relevant emission pathway; 'Strongly-aligned' if they will meet the pathway by 2030; 'Aligning' if they meet the slope of the pathway and have a comprehensive transition plan; and 'not-aligned'.
• For an SLB to be considered 'Aligning', the issuer must provide a transition plan containing three specific elements: a publicly disclosed action plan for decarbonisation (including assets and activity changes), a financing plan with disclosed capex allocation, and a governance mechanism such as a dedicated sustainability board member or committee.
• The methodology mandates strict emission scope requirements: companies selling fossil gas or other fossil fuel products must include scope 3 emission reduction targets. Airports must include emissions from the flights they enable as part of Scope 3 Category 11.
• CBI utilizes a variety of sectoral pathways to assess SPT ambition, prioritizing 1.5°C-aligned pathways. These include CBI's own criteria for Cement, Steel, and Basic Chemicals, as well as third-party pathways from the Transition Pathway Initiative (TPI), Science Based Targets Initiative (SBTi), and the Carbon Risk Real Estate Monitor (CRREM).
• Targets that rely on carbon offsets by more than 10% are disqualified from being considered aligned in the SLB database. Additionally, economic intensity targets are not accepted for assessment against sectoral pathways.

APA

Climate Bonds Initiative (2023). Sustainability-Linked Bond Database Methodology. https://www.climatebonds.net/files/drupal-files/files/CBI_Method_SLBD.pdf

Chicago

Climate Bonds Initiative. Sustainability-Linked Bond Database Methodology. 2023. https://www.climatebonds.net/files/drupal-files/files/CBI_Method_SLBD.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Sustainability-Linked Bond Database Methodology |date=June 2023 |url=https://www.climatebonds.net/files/drupal-files/files/CBI_Method_SLBD.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023sustainabilitylinked, author = {{Climate Bonds Initiative}}, title = {{Sustainability-Linked Bond Database Methodology}}, institution = {Climate Bonds Initiative}, year = {2023}, month = jun, url = {https://www.climatebonds.net/files/drupal-files/files/CBI_Method_SLBD.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }