SUSTAINABILITY BONDS: A MECHANISM DRIVING ORGANIZATIONS BASED ON ESG IN PURSUIT OF SUSTAINABLE DEVELOPMENT GOALS

Abstract

This academic article aims to present knowledge on sustainable global development through business management based on the ESG (Environment, Social, Governance) framework. This approach emphasizes corporate operations considering environmental sustainability, social responsibility, and good governance. Driving an organization with this concept aligns with and supports the Sustainable Development Goals (SDGs). Currently, ESG-driven business operations incorporate financial innovation to raise funds for sustainability projects. For example, sustainability bonds have been developed to solve the shortage of financial resources for supporting corporate sustainability projects, each of which requires massive budgets. Sustainability bonds include green bonds, social bonds, sustainability bonds, and sustainability-linked bonds. Besides, this article highlights the relationship between sustainability bonds and the increasing number of corporate sustainability projects, improvements in ESG scores, indicating enhanced sustainability management capabilities, and the influence of such bonds on investor attitudes, contributing to a positive corporate image. However, key success factors for corporate sustainability bonds must include a clear vision and sustainability policy, well-defined ESG project objectives and goals, disclosure of ESG project details and investment returns, and effective corporate communication to ensure that investors and the public receive clear and accurate information.