Journal of Law and Political Economy

Sustainable debt financing has exploded in recent years, growing from $29 billion in new debt issuances in 2013 to $1 trillion in new issuances in 2023. The continued success of the sustainable finance movement will depend on issuers’ motivations to engage in sustainable finance. This essay investigates the justifications for sustainable finance through a hand-collected dataset of disclosures made by green, social, and sustainability bond issuers. Review of these disclosures reveals that material legal, physical, and regulatory risks sometimes impact these issuers, but that these risks are not identified as motivations for engagement in sustainable finance. Instead, issuers appear to be motivated by shareholder pressures and a desire to enhance the green, socially engaged, or sustainable nature of their corporate brand.