Climate Bonds Social and Sustainability Bond Dataset Methodology

The Climate Bonds Social and Sustainability Bond Dataset Methodology (2025) outlines the criteria and screening processes used by the Climate Bonds Initiative to identify and classify credible social and sustainability (S&S) bonds. The methodology focuses on ensuring that the use of proceeds (UoP) provides substantial benefits to defined target populations and aligns with global sustainability goals while avoiding absolute exclusions such as fossil fuel exploration.

• To be included in the Social and Sustainability Bond Dataset (SSBD), a financial instrument must meet three pre-requisites: it must be a debt instrument (excluding short-term debt like commercial paper), it must be self-labelled by the issuer as a social or sustainability bond, and it must have adequate public disclosure regarding its use of proceeds, amount, issue date, and maturity date.
• The methodology requires that 100% of bond proceeds be allocated to social or environmental projects, with at least 90% specifically directed to activities that are clearly eligible under the screening criteria. A 10% margin of flexibility is permitted for complex outcomes, particularly in less-developed economies, but cannot be used for fossil fuel activities or other absolute exclusions.
• Climate Bonds maintains a list of absolute exclusions (minimum safeguards) for the SSBD. These include fossil fuel exploration, production, and refining; solid fossil fuel-based heat, cool, and electricity generation; transportation of fossil fuels; production or trade in weapons and munitions; harmful or exploitative forced or child labour; activities violating indigenous land rights; and airport infrastructure.
• Road infrastructure is assessed using a context-specific approach. Projects in less-developed or underserved areas that provide critical access to essential services (e.g., rural and feeder roads connecting isolated communities to schools or healthcare) may be eligible. However, highway or expressway construction in developed economies focused on increasing traffic capacity typically does not qualify.
• Bonds in the SSBD are classified into three categories: 'Aligned' (meeting all screening criteria), 'Non-aligned' (failing to meet criteria or lacking ambition), and 'Pending' (insufficient information to determine eligibility). Pending bonds are investigated for 30 days; if no sufficient information is provided, they are moved to the non-aligned list.
• The assessment of social bonds requires ex-ante impact confirmation to ensure the accuracy of assumptions before issuance. This involves identifying a defined target population (including demographics and geography), demonstrating a substantial contribution to that population, and establishing robust monitoring and evaluation metrics.

APA

Climate Bonds Initiative (2025). Climate Bonds Social and Sustainability Bond Dataset Methodology. https://www.climatebonds.net/files/documents/Methodology/Climate-Bonds_Social-and-Sustainability-Bond-Dataset-Methodology_SnS-Meth_EN_2025.pdf

Chicago

Climate Bonds Initiative. Climate Bonds Social and Sustainability Bond Dataset Methodology. 2025. https://www.climatebonds.net/files/documents/Methodology/Climate-Bonds_Social-and-Sustainability-Bond-Dataset-Methodology_SnS-Meth_EN_2025.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Climate Bonds Social and Sustainability Bond Dataset Methodology |date=2025 |url=https://www.climatebonds.net/files/documents/Methodology/Climate-Bonds_Social-and-Sustainability-Bond-Dataset-Methodology_SnS-Meth_EN_2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2025climate, author = {{Climate Bonds Initiative}}, title = {{Climate Bonds Social and Sustainability Bond Dataset Methodology}}, institution = {Climate Bonds Initiative}, year = {2025}, url = {https://www.climatebonds.net/files/documents/Methodology/Climate-Bonds_Social-and-Sustainability-Bond-Dataset-Methodology_SnS-Meth_EN_2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }