The Executive Committee of the Principles announces a Practitioner’s Guide on Sustainable Bonds for Nature, alongside updates to existing guidance
26 June 2025 On the occasion of its Annual General Meeting, the Executive Committee of the Green, Social, Sustainability and Sustainability-Linked Bond Principles (the “Principles”), supported by the International Capital Market Association (ICMA), announces guidance: Sustainable Bonds for Nature: a Practitioner’s Guide, alongside other important updates.
The Principles are the voluntary standard for the global $6 trillion sustainable bond market that represents the largest source of market finance dedicated to sustainability and climate transition, available to corporates and financial institutions, as well as supranationals, agencies and sovereigns.
The key publication released today is Sustainable Bonds for Nature: A Practitioner’s Guide. This Guide is meant to be used in conjunction with the Principles and is intended for use by all types of issuers (private and public sector). It acts as an additional thematic guidance for use of proceeds (UoP) bonds such as green bonds or sustainability bonds to finance projects supporting nature, considering that such activities span all eligible green project categories. It also provides issuers of green bonds with proceeds exclusively applied to finance nature-related projects with the option to use the secondary designation of a “Nature Bond”.
The Guide otherwise points to the potential for sustainability-linked bonds to incorporate nature-related key performance indicators (KPIs). The table in the appendix provides a list of indicative nature-related projects under the 10 eligible green categories of the Green Bond Principles (GBP), as well as relevant impact reporting indicators including some from the Harmonised Framework for Impact Reporting, as well as new ones.
The Executive Committee of the Principles has also released today various guidance documents and updates that complement existing publications, specifically:
- An update of the Green Bond Principles with a clear reference to the Green Enabling Projects Guidance and an extension of the definition of Green Projects to include “activities” (this second point being also mirrored in the Social Bond Principles).
- A new Example Checklist to provide support to users in demonstrating how their projects align with the Green Enabling Projects Guidance document. It contains illustrative examples and counterexamples for four out of the five sectors listed in the Guidance.
- Dedicated FAQs added as an annex to both the Guidelines for Sustainability-Linked Loans financing Bonds (SLLBs) and the Guidance for Green Enabling Projects, originally published in June 2024.
- Additional impact reporting metrics and sector specific guidance concerning Access to essential services, as well as a new annex regarding Potential Environmental and/or Social Risks Associated with Eligible Project Categories included in the Harmonised Framework for Impact Reporting for Social Bonds.
- An expansion of the SLB Illustrative KPIs Registry, related to environmental and social themes as well as additional KPIs for sovereign issuers and a revision of the definition of secondary KPIs.
- A single document integrating all guidance on allocation reporting, the Guidance on Allocation Reporting, to facilitate its understanding and application.
Finally, the Executive Committee of the Principles updated its Guidance Handbook (Q&A) confirming the likely ineligibility of defence projects for Green, Social and Sustainability (GSS) Bonds while underlining the role of Social Bonds in supporting vulnerable populations with dedicated projects in fragile and conflict states.
See the Mapping of the Principles for a holistic overview.
The Principles also announced the renewal of half of the 24 members of its Executive Committee following an annual vote in line with its governance.
The standards and guidance from the Principles are developed with the input of over 340 market participants and stakeholders, as well as the participation of many other organisations through technical working groups. The Principles are the de facto market standard referenced by over 98% of sustainable bond issuance.
The 2025 Annual Conference of the Principles will be held in hybrid format in Tokyo, Japan, on Thursday, 6 November, and will be co-hosted by the Japan Securities Dealers Association (JSDA).
Isabelle Laurent, Deputy Treasurer, EBRD and Chair of the Principles, said: “The Principles continue to highlight and support the importance of transparency in underpinning the integrity of the GSSS bond market, including through new guidance and metrics, which is key to the ongoing development of this global market”.
Nicholas Pfaff, Deputy Chief Executive and Head of Sustainable Finance, ICMA said: “The Principles add further to their extensive thematic guidance for issuers by now providing detailed guidance to support the financing of nature projects by sustainable bonds, while also publishing other important updates and resources notably for green enabling projects”.
Agnes Gourc, Head of Sustainable Capital Markets, DCM Structuring & Solutions, BNP Paribas and Vice-Chair of the Principles, said: “The extensive work delivered each year by the ExCom, assisted by the Working Groups, is unique. The ExCom of the Principles remains indeed the only body supporting the development of the sustainable bond market worldwide. This year again, the Principles have kept evolving, developing a new Practitioner’s Guide on Sustainable Bonds for Nature, but also providing additional Q&As on new guidance released last year for Green Enabling Projects and Sustainability-Linked Loans financing Bonds”.
Alban de Fay, Head of Fixed Income SRI Processes, Senior Portfolio Manager, AMUNDI and Vice-Chair of the Principles said: “The latest publications under the ICMA’s Principles demonstrate again our ability to innovate and to take into account necessary new evolutions to ensure the development and proper standardization of the sustainable bond market. It reinforces ICMA’s Principle’s commitment to advancing overall sustainable finance particularly by supporting nature-positive investments worldwide, ensuring that capital flows not only to climate solutions but also to the preservation and restoration of biodiversity. The release of the Nature Guide is indeed a necessary key step to support projects in favour of nature and biodiversity, a crucial topic that meets many growing expectations in this area”.
