A new World Bank report - Striking the Right Note : Key Performance Indicators for Sovereign Sustainability-Linked Bonds - presents a framework to bridge the gap between what sovereign investors would view as appropriately ambitious actions and what issuing countries see as achievable targets. Building on the “Sustainability-Linked Bond Principles” set out by the International Capital Market Association (ICMA), the report provides initial guidance on what a framework for assessing the suitability of KPIs might look like. The metrics include whether a potential indicator is sufficiently robust, properly interpreted, aligned with the country context and credibly ambitious. The report outlines a top-down approach, designed to make the KPI setting and monitoring process as simple as possible, while considering countries’ priorities and context.
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