Why Sustainable Bonds for CFOs Matter Now

At a moment when the global financing gap for sustainable development continues to widen, the need for credible, scalable and diverse sources of capital has become impossible to ignore. Both public and private sectors are under pressure to mobilize solutions equal to the scale of the climate, nature and social challenges confronting economies worldwide. Within this landscape, CFOs stand out as pivotal actors. Their decisions shape investment pipelines, balance-sheet strategies and the flow of capital into sustainable development.

This is why the UN Global Compact’s CFO Coalition for the SDGs has developed the CFO Primer on Sustainable Bonds, launched at PRI in Person and released in the run-up to COP30. The Primer is not a technical handbook or a substitute for market guidance. Rather, it is a practical companion for CFOs navigating the fast-evolving sustainable bond market, created in direct response to what Coalition members themselves have reported they need. 

Why the Primer Exists‍

A core ambition of the CFO Coalition is to help build what its Principle 3: Integrated Corporate SDG Finance describes as a “holistic marketplace” for sustainable investment and finance. That means a market where companies can confidently align their financing decisions with SDG-aligned strategies, and where investors can trust the integrity of instruments designed to deliver environmental and social impact.

Sustainable bonds—encompassing Green, Social, Sustainability, and Sustainability-Linked (GSSSBs)—are increasingly central to that ambition. They have moved from niche products to major components of corporate finance, yet many companies remain unsure when and how to use them. The Coalition saw this gap clearly. In late 2025, it surveyed CFOs and finance leaders to better understand members’ experiences with GSSSBs, the key challenges impeding issuance and what support they require. Respondents came from a wide range of regions and sectors, including both seasoned sustainable bond issuers and companies exploring issuance for the first time. Their feedback was clear: interest is high, investor demand is rising, but considerable barriers—internal capacity, market uncertainty, lack of guidance on KPIs and concerns about credibility—still prevent many from entering the market.

The Primer was created directly from that insight. It reflects what CFOs are asking for: not a deep dive into the mechanics of bonds, but a concise, accessible resource explaining why sustainable bonds matter, where the market is heading and how companies can incorporate them into their unique sustainable finance needs and journeys.‍

A Growing Need for Scalable Financing Tools‍

Market conditions, regulatory expectations and investor priorities have shifted dramatically in the last several years, highlighting the relevance of this Primer.

2024 saw annual issuance of GSSSBs reach USD 1.1 trillion, and cumulative issuance of GSSSBs passed the USD 6 trillion mark in June 2025. Despite crossing this threshold, 2025 has seen a slowdown in issuance, driven by geopolitical uncertainty and rising financing costs. This has left many companies questioning when and how to engage. At the same time, institutional investors continue to seek transparent, credible, outcomes-oriented financing products.

This tension has created a moment of both uncertainty and opportunity. As governments tighten disclosure rules and markets prepare for the next wave of transition-aligned investment, early preparation can help stronger positioning with rating agencies, regulators and long-term investors for future issuance plans. 

The Primer provides companies with context for this environment—and, more importantly, how to operate confidently within it. Building on the CFO Coalition Survey, the Primer is designed to give companies a clear, accessible overview of the sustainable bond landscape—without the technical barriers that often accompany market guidance. It helps finance leaders quickly understand the current market context and how their peers are thinking about or responding to sustainable bond issuance. More importantly, it enables companies to assess whether and when participation makes sense: what the potential benefits and risks are, and what internal capabilities may be needed. 

For those ready to act, the Primer walks through the main types of instruments, from use-of-proceeds to sustainability-linked formats, and outlines the core factors that define high-quality issuance—from credible KPIs to strong governance and transparent reporting. In doing so, it acts as a bridge between corporate sustainability strategy and the practical realities of capital markets.‍

The Road Ahead

The global sustainable finance landscape is evolving rapidly. With a significant portion of sustainable bonds in emerging markets maturing in 2026 and with regulatory and investor expectations rising, companies will face growing pressure to demonstrate clarity, ambition and integration in their financing decisions.

In this context, CFOs will need to prepare for a more demanding market environment—one that rewards transparency, credible transition plans, and strong data foundations. Strengthening internal governance, clarifying sustainability-linked targets, and aligning disclosures with emerging global standards will become critical to maintaining investor confidence and access to capital. The CFO Primer on Sustainable Bonds is intended as a starting point—a resource to help companies understand the landscape, identify opportunities and begin their engagement with sustainable finance on a solid footing. It is both a response to the needs of CFOs and an invitation: to lead, to innovate and to help build the integrated marketplace for sustainable investment that the world urgently needs.

If CFOs take up that invitation, the payoff is tangible and immediate. It means more companies are able to finance real transition and resilience investment—at scale, with integrity, and with a cost of capital that reflects credible performance—rather than relying on constrained public budgets or ad-hoc sustainability projects. It widens and deepens the pool of high-quality issuers, strengthens investor trust in the labelled market, and accelerates the shift from commitments to measurable outcomes. Over time, that creates a virtuous cycle: clearer standards and stronger data reduce uncertainty, investor demand grows, and sustainable bonds become a normal part of corporate funding programmes—unlocking faster progress on climate, nature and social goals in the real economy, especially where the financing gap is deepest.

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