The global sustainable debt market may struggle to surpass its high-water mark again for a third year as borrowers grapple with additional labelling costs, higher interest rates and heightened ESG scrutiny.
The share of overall bond sales labelled as ESG plunged this year to its lowest level since 2020, data compiled by Bloomberg showed. The slide was most pronounced in North America, where ESG bonds made up just 2 per cent of all sales. Investors and credit strategists are tempering their expectation for a resurgence in 2024. Sustainable Fitch said it expects issuance to be muted if rates remain high.
