Climate Bonds Core Methodology for Data Products

The Climate Bonds Core Methodology for Data Products (Version 1.0, March 2026) provides the shared analytical framework, screening logic, and data architecture for all thematic debt datasets produced by the Climate Bonds Initiative. It establishes a consistent, science-based system to classify labelled-debt instruments—including green, social, sustainability, and sustainability-linked bonds—based on their credibility in contributing to environmental or social objectives.

• The Core Methodology serves as the central layer of a three-tier data methodology ecosystem. This system consists of the Core Methodology for overarching framework, dataset-level methodologies for specific public modules, and an internal screening library containing detailed, continuously updated application rules for analysts.
• Climate Bonds classifies labelled-debt instruments into three primary datasets based on their mechanism and objective: the Green Bond Dataset (GBD) for mitigation and environmental benefits using Use-of-Proceeds (UoP); the Social and Sustainability Bond Dataset (SSBD) for social and sustainable development outcomes using UoP; and the Sustainability-linked Bond Dataset (SLBD) for 1.5°C-aligned transition commitments using KPI/target-based mechanisms.
• The screening process results in a binary classification of 'Aligned' or 'Not aligned', with a temporary 'Pending' status for instruments with insufficient public disclosure. 'Aligned' indicates the UoP or KPI credibly contributes to objectives, while 'Not aligned' indicates a lack of credible contribution, ambition, or transparency.
• The framework employs a high-level exclusion principle to prevent 'fossil-fuel lock-in' and avoid activities that undermine climate mitigation. This approach is distinct from a full 'do no significant harm' (DNSH) framework, as it focuses on avoiding carbon lock-in and uses sector-specific alignment conditions rather than detailed, activity-level risk thresholds.
• Sub-themes (such as blue, biodiversity, gender, and just transition) are used as label-agnostic analytical categories to describe what an instrument actually funds. These are assigned via a materiality assessment, and multi-tagging is permitted to capture overlaps between environmental and social objectives.
• Alignment assessments are based on a systematic review of primary information sources, including prospectuses, bond frameworks, and regulatory filings. External reviews (such as SPOs) are treated as supplementary information inputs and do not guarantee automatic inclusion or alignment.
• A '10% flexibility margin' may be applied in certain datasets to allow for a small share of non-eligible components, provided these components are minor and incidental. This margin is not applicable to activities that breach minimum safeguards or fundamentally conflict with climate mitigation.

APA

Michetti, C. (2026). Climate Bonds Core Methodology for Data Products. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Core-Methodology-for-Data-Products_01A-1.pdf

Chicago

Michetti, Carlotta. Climate Bonds Core Methodology for Data Products. Climate Bonds Initiative, 2026. https://www.climatebonds.net/files/documents/publications/Core-Methodology-for-Data-Products_01A-1.pdf.

Wikipedia

{{cite report |last1=Michetti |first1=Carlotta |title=Climate Bonds Core Methodology for Data Products |publisher=Climate Bonds Initiative |date=March 2026 |url=https://www.climatebonds.net/files/documents/publications/Core-Methodology-for-Data-Products_01A-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{michetti2026climate, author = {Michetti, Carlotta}, title = {{Climate Bonds Core Methodology for Data Products}}, institution = {Climate Bonds Initiative}, year = {2026}, month = mar, url = {https://www.climatebonds.net/files/documents/publications/Core-Methodology-for-Data-Products_01A-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }