Multilateral development banks’ use of green, social and sustainability (GSS) bonds: lessons for private investors
Authors: Judith Tyson, Liam Orme, Zuzanna Charkowska and Valeria Dagnino Contreras
This report from the Just Transition Finance Lab explores approaches taken by multilateral development banks (MDBs) to the just transition and details how private investors seeking to engage in just transition principles and impact can embed the concept within green, social and sustainability (GSS) bonds and other private financial investments. The authors present a methodology for identifying emerging best practice within MDB approaches to the just transition which can be leveraged by private finance. Using the methodology the authors assess all global and regional MDBs that issue GSS bonds, finding that MDBs are committed to the just transition and have been developing sophisticated and complex approaches to embedding it throughout their operations. They have made a coordinated commitment but have also tailored their approaches to their regional contexts. This has been reflected in their GSS bonds, including in their bond frameworks and impact reporting.