Best Practice Guidance for Corporate Sustainable Bond Issuance

This guide outlines best practices for issuers of green, social, sustainability, or sustainability-linked bonds, as provided by PIMCO's ESG analyst team. It begins with guidance aligned with the International Capital Market Association (ICMA) Principles and Guidelines, emphasizing the importance of clear eligibility thresholds and impact reporting. The document details the alignment of bond proceeds with Sustainable Development Goals (SDGs) and the necessity for sustainability disclosures connected to the issuer's long-term strategy. It also discusses the importance of transparency, verification, and impact reporting, highlighting the need for issuers to provide comprehensive documentation and updates to investors. The guide emphasizes the management and allocation of proceeds, recommending that issuers avoid temporary uses of proceeds and ensure that all allocations align with green bond objectives. Additionally, it includes recommendations for impact reporting that links to firm-wide targets and provides specific guidance on metrics and methodologies for reporting emissions and project impacts.