A study on the greenium of sustainability-linked bonds (SLB)
University of Zurich compared SLBs to their non-labelled equivalents. 55 of the bond pairs saw a sustainabilty premium larger than penalty attached for not meeting KPIs. 36 of the pairs saw no or a negative premium. Premium was higher for callable bonds, where the issuer may repay the debt before maturity and often before the KPI measurement date.

11 February 2022

Responsible Investor, University of Zürich