Climate change and recent geopolitical events highlight an urgent need to consider resilience in finance.  This is true both in the financial system and in the role played by capital and investors in making economic systems more dynamic and able to withstand external shocks.

OECD work on sustainable finance, including analysis of sustainable bonds and the integration of ESG factors in investment decisions, can help financial authorities better evaluate and address climate-related financial risks, encompassing both physical and transition risks.

By aligning efforts across borders, our work on sustainable finance aims to channel capital towards environmental and social goals and ensure resilient economic growth and development globally.

Amid public sector initiatives to achieve the Paris Climate Agreement, there is growing recognition that financial markets will play a critical role in supporting an orderly transition to low-carbon economies.

Sustainability-related information allows investors to better understand the governance and management of climate and other sustainability-related risks and opportunities, enhancing market efficiency and investors' protection. Investors need to have access to consistent, transparent, and high-quality information to make informed decisions about capital allocation and engagement with companies.

Despite progress, the lack of transparency and comparability of methodologies and metrics used globally raises challenges to efficiently channel capital towards environmental and social goals. OECD work address these issues and aim to improve the transparency and comparability of sustainability-related information. 

The total value of corporate sustainable bonds issued in 2019-2023 was six times bigger than in 2014-18. In 2023, the outstanding amount of sustainable bonds issued by the corporate sector totalled USD 2.3 trillion. Sustainability-linked bonds (SLBs) accounted for 20% of the amount issued by non-financial companies in 2023.

If the proceeds of all sustainable bond issuances are invested in projects that deliver positive environmental and social benefits for relatively small costs, investors and society at large will benefit. However,  regulatory authorities and frameworks must ensure that markets for these products work efficiently and that investors’ interests are protected.