16 September 2025
Green and sustainability-linked financing is gaining traction among companies driven by global efforts to support climate-aligned activities. These instruments promote the achievement of sustainability targets by linking their pricing, i.e., interest rates or coupons, to the attainment of pre-defined environmental or social targets.
IAASA has undertaken a thematic desktop examination of sustainability-linked debt and the related disclosures presented in a sample of issuers’ annual reports.
The examination was conducted on the annual reports of 17 equity issuers listed on the main market of Euronext Dublin with the objective of this paper being to inform stakeholders about the extent to which these issuers are leveraging borrowing arrangements that reflect sustainability commitments. It further explores the integration of sustainability performance into remuneration frameworks.
The findings suggest that while sustainability-linked debt is increasingly common, there remains scope for enhanced disclosure practices and standardisation. Issuers are encouraged to improve the clarity of target-setting, integrate sustainability considerations into accounting policies, and ensure that contingent liabilities and remuneration structures are transparently aligned with sustainability outcomes.
IAASA encourages issuers to adopt best practices that support the integrity and comparability of sustainability-linked financial reporting to enable stakeholders to assess its impact on the financial performance and position of the entity.
The report is available here.