IDEAS home Printed from https://ideas.repec.org/a/spr/jsecdv/v25y2023i1d10.1007_s40847-023-00275-8.html
   My bibliography  Save this article

An overview of green, social, sustainability, and sustainability-linked (GSSS) bonds

Author

Listed:
  • Swayam Prava Mishra

    (Utkal University)

  • Rajnish Kumar
  • Jashasya Rout

    (Utkal University)

Abstract

The earth has witnessed a tremendous change concerning climate and the associated risks. In a move for a greener and climate-resilient economy, countries around the world have moved from traditional finance to sustainable finance. The promising GSSS bonds have become a potential instrument to cater to global SDG financing. These bonds offer an opportunity to align financial returns with sustainable outcomes. Globally, GSSS bond issuances have grown by an average annual rate of 80%, meaning that the market size has almost doubled from one year to the next since 2014 (OECD 2022). This paper provides an overview of green, social, sustainability, and sustainability-linked bonds (GSSS or GS3 bonds). The overview starts with the definition of GS3 bonds, a review of existing literature on green bonds and GSSS bonds, global growth trends, growth in emerging markets, global regulatory development in this domain, the development of GS3 bonds in India, and the significance of ESG rating providers in the development of the green market. Although there is an exponential increase in GS3 bonds globally, for further transition to sustainable finance by corporates and sovereign, initiatives in the regulatory, and financial markets and credibility of ESG rating providers are imperative, not just in developed markets but in emerging markets as well.

Suggested Citation

  • Swayam Prava Mishra & Rajnish Kumar & Jashasya Rout, 2023. "An overview of green, social, sustainability, and sustainability-linked (GSSS) bonds," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(1), pages 127-145, December.
  • Handle: RePEc:spr:jsecdv:v:25:y:2023:i:1:d:10.1007_s40847-023-00275-8
    DOI: 10.1007/s40847-023-00275-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40847-023-00275-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s40847-023-00275-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lloyd Freeburn & Ian Ramsay, 2020. "Green bonds: legal and policy issues," Capital Markets Law Journal, Oxford University Press, vol. 15(4), pages 418-442.
    2. Flammer, Caroline, 2021. "Corporate green bonds," Journal of Financial Economics, Elsevier, vol. 142(2), pages 499-516.
    3. Gong Cheng & Torsten Ehlers & Frank Packer, 2022. "Sovereigns and sustainable bonds: challenges and new options," BIS Quarterly Review, Bank for International Settlements, September.
    4. Juan Giráldez & Stephanie Fontana, 2022. "Sustainability-linked bonds: the next frontier in sovereign financing," Capital Markets Law Journal, Oxford University Press, vol. 17(1), pages 8-19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mariani, Massimo & D’Ercole, Francesco & Frascati, Domenico & Fraccalvieri, Giuseppe, 2025. "Sustainability-linked bonds, corporate commitment and the cost of debt," Research in International Business and Finance, Elsevier, vol. 74(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yao, 2025. "Greenwashing or green evolution: Can transition finance empower green innovation in carbon-intensive enterprise?," International Review of Financial Analysis, Elsevier, vol. 97(C).
    2. Daniel C. L. Hardy, 2022. "Alternatives in the Design of Sovereign Green Bonds," wiiw Policy Notes 62, The Vienna Institute for International Economic Studies, wiiw.
    3. Clarisse Heck Machado & Miguel Sousa & Manuel Castelo Branco, 2025. "Sustainability-Linked Bonds Research: A Bibliometric and Content Analysis Review," IJFS, MDPI, vol. 13(2), pages 1-22, April.
    4. Alexander Dryden & Enrico Pulieri, 2025. "The Price of Trust: Greenium and Greenwashing in Asia’s Green Bond Markets," Working Papers 266, Department of Economics, SOAS University of London, UK.
    5. Al Mamun, Md & Boubaker, Sabri & Nguyen, Duc Khuong, 2022. "Green finance and decarbonization: Evidence from around the world," Finance Research Letters, Elsevier, vol. 46(PB).
    6. Ying Liu & Hongyun Huang & William Mbanyele & Fengrong Wang & Huiling Liu, 2024. "Does the issuance of green bonds nudge environmental responsibility engagements? Evidence from the Chinese green bond market," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-42, December.
    7. Lebelle, Martin & Lajili Jarjir, Souad & Sassi, Syrine, 2022. "The effect of issuance documentation disclosure and readability on liquidity: Evidence from green bonds," Global Finance Journal, Elsevier, vol. 51(C).
    8. Zhang, Ping & Guo, Qinghua, 2023. "Carbon Emission Reduction Effects of China's Green Local Government Special Bonds under ‘Dual Carbon Goals’," Finance Research Letters, Elsevier, vol. 58(PA).
    9. Yu, Qing & Hui, Eddie Chi-Man & Shen, Jianfu, 2024. "The real impacts of third-party certification on green bond issuances: Evidence from the Chinese green bond market," Journal of Corporate Finance, Elsevier, vol. 89(C).
    10. Yoshihiro Zenno & Kentaka Aruga, 2022. "Institutional Investors’ Willingness to Pay for Green Bonds: A Case for Shanghai," JRFM, MDPI, vol. 15(11), pages 1-16, November.
    11. Michela Scatigna & Dora Xia & Anna Zabai & Omar Zulaica, 2021. "Achievements and challenges in ESG markets," BIS Quarterly Review, Bank for International Settlements, December.
    12. Gong Cheng & Torsten Ehlers & Frank Packer & Yanzhe Xiao, 2024. "Sovereign green bonds: a catalyst for sustainable debt market development?," BIS Working Papers 1198, Bank for International Settlements.
    13. Kun Luo & Ke Zhang, 2024. "Executive's environmental background and sustainable development: Evidence from substantial green innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4812-4828, October.
    14. Giusy Chesini, 2024. "Can Sovereign Green Bonds Accelerate the Transition to Net-Zero Greenhouse Gas Emissions?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 30(2), pages 177-197, May.
    15. Lin, Boqiang & Su, Tong, 2022. "Green bond vs conventional bond: Outline the rationale behind issuance choices in China," International Review of Financial Analysis, Elsevier, vol. 81(C).
    16. Mayank Joshipura & Sachin Mathur & Nikita Kedia, 2024. "Sustainable investing and financing for sustainable development: A hybrid review," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4469-4485, October.
    17. Boutabba, Mohamed Amine & Rannou, Yves, 2022. "Investor strategies in the green bond market: The influence of liquidity risks, economic factors and clientele effects," International Review of Financial Analysis, Elsevier, vol. 81(C).
    18. Zhou, Yang & Xie, Chi & Wang, Gang-Jin & Zhu, You & Uddin, Gazi Salah, 2023. "Analysing and forecasting co-movement between innovative and traditional financial assets based on complex network and machine learning," Research in International Business and Finance, Elsevier, vol. 64(C).
    19. Rannou, Yves & Boutabba, Mohamed Amine & Barneto, Pascal, 2021. "Are Green Bond and Carbon Markets in Europe complements or substitutes? Insights from the activity of power firms," Energy Economics, Elsevier, vol. 104(C).
    20. Pietsch, Allegra & Salakhova, Dilyara, 2022. "Pricing of green bonds: drivers and dynamics of the greenium," Working Paper Series 2728, European Central Bank.

    More about this item

    Keywords

    GSSS bonds; Sustainable finance; Regulations; SPO;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jsecdv:v:25:y:2023:i:1:d:10.1007_s40847-023-00275-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.