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Business Standard
2 hours ago
- Business
- Business Standard
Sebi comes out with operational framework for ESG debt securities
Markets regulator Sebi on Thursday came out with an operational framework for issuance of social bonds, sustainability bonds and sustainability-linked bonds, which together will be known as Environment, Social and Governance (ESG) debt securities. This will help issuers to raise money for more sustainable projects, assisting in closing the funding gap for the Sustainable Development Goals. In its circular, Sebi said the debt securities will be labelled as 'social bonds' or 'sustainability bonds' or 'sustainability-linked bonds' only if the funds raised through the issuance of such debt securities are proposed to be utilised for financing or refinancing projects. The regulator has addressed the initial and continuous disclosures for sustainable securitised debt instruments that would be based on international frameworks. Initial disclosures would be made in the offer document for the securities, while continuous disclosures would be included in annual reports or other mandated formats. Sebi said that an issuer desirous of issuing social bonds will have to make additional disclosures in the offer document for public issues or private placements. These included social objectives of the social project, brief details of the decision-making process followed for determining the eligibility of projects, details of the procedures to be employed for tracking the deployment of the proceeds and details of an indicative estimate of distribution of proceeds between financing and refinancing of projects. In case of refinancing, details of the existing debt are proposed to be refinanced, including the amount outstanding. The issuer is required to appoint an independent third-party reviewer/ certifier to ascertain that the ESG-labelled debt securities are in alignment with any of the recognised standards. An issuer desirous of issuing sustainability bonds will have to comply with the provisions specified for green debt security. An issuer of social bonds or sustainability bonds will have to ensure that all projects funded by the proceeds of such securities meet the objectives of social bonds or sustainability bonds and utilise the proceeds only for the stated purpose, as disclosed in the offer document. "Certain social projects may also have environmental co-benefits, and that certain green projects may have social co-benefits. The classification of a debt security as a green debt security, social bond or sustainability bond should be determined by the issuer based on its primary objectives for the underlying projects," Sebi said. While raising funds for social objects or sustainability objects, an issuer will have to continuously monitor to check whether the form of operations undertaken is resulting in reduction of the adverse social impact or sustainable impact, as envisaged in the offer document. The framework will come into force for issuances of ESG debt securities with effect from June 5, 2025.
Economic Times
2 hours ago
- Business
- Economic Times
Sebi issues new ESG debt framework to regulate social, sustainability, and linked bonds
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel To encourage responsible finance and curb "purpose-washing," capital markets regulator Sebi has released a detailed framework for issuing and listing ESG (Environment, Social and Governance) debt securities, excluding green new norms, which came into effect on June 5, aim to enhance transparency, credibility, and accountability in the ESG debt to Sebi, ESG debt securities will now include three major categories apart from green bonds — social bonds, sustainability bonds , and sustainability-linked bonds . These instruments must follow recognized global standards such as the ICMA Principles, Climate Bonds Standard, ASEAN Standards, or any methodology notified by Indian financial bonds are meant to raise money for projects with a direct social impact, such as affordable housing, clean water, education, or food security. Sustainability bonds combine both environmental and social objectives, while sustainability-linked bonds are performance-based instruments, where the financial terms are tied to the issuer's achievement of pre-set sustainability of such bonds will need to make detailed disclosures before and after the issue. They must outline the specific projects they intend to fund, explain how they will track fund usage, and appoint independent third-party reviewers to verify claims. Post-listing, companies must share impact reports, usage of proceeds, and KPIs in their annual reports. This is aimed at curbing the misuse of ESG labels — known as 'purpose-washing' — where companies falsely claim to be funding ESG has also made it clear that companies listed on SME platforms and looking to issue ESG debt will need to follow bi-annual disclosure norms, as specified in the circular's annexures. The regulator has empowered ESG rating agencies and certified reviewers to ensure proper assessments of bond impact and target if any ESG funds are found misused or the projects do not align with their stated purpose, companies may be forced to redeem the securities regulatory push comes at a time when ESG investing is gaining traction in India. By aligning local frameworks with international norms, Sebi aims to build investor confidence and deepen India's ESG debt market responsibly.
Time of India
2 hours ago
- Business
- Time of India
Sebi issues new ESG debt framework to regulate social, sustainability, and linked bonds
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel To encourage responsible finance and curb "purpose-washing," capital markets regulator Sebi has released a detailed framework for issuing and listing ESG (Environment, Social and Governance) debt securities, excluding green new norms, which came into effect on June 5, aim to enhance transparency, credibility, and accountability in the ESG debt to Sebi, ESG debt securities will now include three major categories apart from green bonds — social bonds, sustainability bonds , and sustainability-linked bonds . These instruments must follow recognized global standards such as the ICMA Principles, Climate Bonds Standard, ASEAN Standards, or any methodology notified by Indian financial bonds are meant to raise money for projects with a direct social impact, such as affordable housing, clean water, education, or food security. Sustainability bonds combine both environmental and social objectives, while sustainability-linked bonds are performance-based instruments, where the financial terms are tied to the issuer's achievement of pre-set sustainability of such bonds will need to make detailed disclosures before and after the issue. They must outline the specific projects they intend to fund, explain how they will track fund usage, and appoint independent third-party reviewers to verify claims. Post-listing, companies must share impact reports, usage of proceeds, and KPIs in their annual reports. This is aimed at curbing the misuse of ESG labels — known as 'purpose-washing' — where companies falsely claim to be funding ESG has also made it clear that companies listed on SME platforms and looking to issue ESG debt will need to follow bi-annual disclosure norms, as specified in the circular's annexures. The regulator has empowered ESG rating agencies and certified reviewers to ensure proper assessments of bond impact and target if any ESG funds are found misused or the projects do not align with their stated purpose, companies may be forced to redeem the securities regulatory push comes at a time when ESG investing is gaining traction in India. By aligning local frameworks with international norms, Sebi aims to build investor confidence and deepen India's ESG debt market responsibly.
The Star
2 days ago
- Business
- The Star
How food packaging waste challenges South Africa's zero waste to landfill ambitions
Globally, 1.05 billion tonnes of food go to waste, and in South Africa, almost 10.3 million tonnes of food go to waste annually, says the writer. Image: Picture: Supplied Sustainability has become the watchword for South African corporates, as they grapple with both the public's demand for environmentally friendly products and the demands of Environmental, Social and Governance (ESG) reporting. However, this shift is now not only fostering collaboration between waste producers and managers to develop solutions that meet both environmental and regulatory expectations, but is also reshaping business practices for a more circular and responsible economy. And it's not hard to understand why. Globally, 1.05 billion tonnes of food go to waste, and in South Africa, almost 10.3 million tonnes of food go to waste annually, however, the packaging that accompanies this waste has exacerbated the strain on our waste management systems. As a result, to manage these numbers, companies are now examining business models that allow them to correctly move from the linear take-make-dispose model to a system that minimises waste, conserves energy and raw materials, and reintegrates excess back into the cycle – what has been termed the 'circular economy'. At Interwaste, this principle is brought to life through practical, scalable solutions such as composting, which allows for the organic fraction of packaging waste — often tied to food disposal— to be diverted from landfill and transformed into nutrient-rich compost that feeds agricultural soils. In parallel, our Refuse Derived Fuel (RDF) technology enables the conversion of non-recyclable packaging waste into a fuel substitute used in industrial applications such as cement kilns, offering a valuable landfill alternative and reducing dependency on fossil fuels. Additionally, given that in today's market, where consumer perceptions heavily influence brand value, demand is another key driver shaping packaging trends. In fact, according to research, consumers are willing to spend 9.7% more, on average, for sustainably produced or sourced goods, given that an astonishing 85% report experiencing first-hand the disruptive effects of climate change in their daily lives. It's no surprise then that companies are using this type of data to drive innovative, sustainable packaging designs — incorporating biodegradable, compostable, and recyclable materials, as well as reusable systems that support a zero-waste-to-landfill approach. However, if South Africa is to reach its zero waste to landfill goal by 2030, the reality is that 90% of waste from landfills must still be diverted correctly – and this means not merely just making use of recycling and reuse, by beneficiation technologies as well as, if we want to create value-adding opportunities which have the potential to create numerous environmental, social, and economic opportunities for South Africa. Simply put, achieving a zero-waste, sustainable country starts with better management of waste at its source, supported by innovative solutions, as well as an effective recycling system and a widespread culture of responsible consumption. And we need to start at a company level, where organisations examine their entire value chain to see how and where waste is created and therefore reduced, as well as where waste can be reused, recycled or repurposed. This approach, when applied correctly, will not only divert a large amount of our waste from landfill disposal, but it also has the potential to create numerous environmental and social opportunities for South Africans, including economic ones. While tackling food packaging waste requires navigating a complex web of environmental, economic, and social challenges, meaningful progress is within reach - if industry leaders, policymakers, and consumers unite behind bold, innovative action. Certainly, as a waste management company, Interwaste is not just a participant in this process but a key driver of the transition to a truly circular economy, leveraging technologies like RDF and composting to turn waste into opportunity. We remain committed to delivering sustainable solutions that make a lasting impact. Justin Bott, CEO at Interwaste
IOL News
3 days ago
- Business
- IOL News
How food packaging waste challenges South Africa's zero waste to landfill ambitions
Globally, 1.05 billion tonnes of food go to waste, and in South Africa, almost 10.3 million tonnes of food go to waste annually, says the writer. Image: Picture: Supplied Sustainability has become the watchword for South African corporates, as they grapple with both the public's demand for environmentally friendly products and the demands of Environmental, Social and Governance (ESG) reporting. However, this shift is now not only fostering collaboration between waste producers and managers to develop solutions that meet both environmental and regulatory expectations, but is also reshaping business practices for a more circular and responsible economy. And it's not hard to understand why. Globally, 1.05 billion tonnes of food go to waste, and in South Africa, almost 10.3 million tonnes of food go to waste annually, however, the packaging that accompanies this waste has exacerbated the strain on our waste management systems. As a result, to manage these numbers, companies are now examining business models that allow them to correctly move from the linear take-make-dispose model to a system that minimises waste, conserves energy and raw materials, and reintegrates excess back into the cycle – what has been termed the 'circular economy'. At Interwaste, this principle is brought to life through practical, scalable solutions such as composting, which allows for the organic fraction of packaging waste — often tied to food disposal— to be diverted from landfill and transformed into nutrient-rich compost that feeds agricultural soils. In parallel, our Refuse Derived Fuel (RDF) technology enables the conversion of non-recyclable packaging waste into a fuel substitute used in industrial applications such as cement kilns, offering a valuable landfill alternative and reducing dependency on fossil fuels. Additionally, given that in today's market, where consumer perceptions heavily influence brand value, demand is another key driver shaping packaging trends. In fact, according to research, consumers are willing to spend 9.7% more, on average, for sustainably produced or sourced goods, given that an astonishing 85% report experiencing first-hand the disruptive effects of climate change in their daily lives. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ It's no surprise then that companies are using this type of data to drive innovative, sustainable packaging designs — incorporating biodegradable, compostable, and recyclable materials, as well as reusable systems that support a zero-waste-to-landfill approach. However, if South Africa is to reach its zero waste to landfill goal by 2030, the reality is that 90% of waste from landfills must still be diverted correctly – and this means not merely just making use of recycling and reuse, by beneficiation technologies as well as, if we want to create value-adding opportunities which have the potential to create numerous environmental, social, and economic opportunities for South Africa. Simply put, achieving a zero-waste, sustainable country starts with better management of waste at its source, supported by innovative solutions, as well as an effective recycling system and a widespread culture of responsible consumption. And we need to start at a company level, where organisations examine their entire value chain to see how and where waste is created and therefore reduced, as well as where waste can be reused, recycled or repurposed. This approach, when applied correctly, will not only divert a large amount of our waste from landfill disposal, but it also has the potential to create numerous environmental and social opportunities for South Africans, including economic ones. While tackling food packaging waste requires navigating a complex web of environmental, economic, and social challenges, meaningful progress is within reach - if industry leaders, policymakers, and consumers unite behind bold, innovative action. Certainly, as a waste management company, Interwaste is not just a participant in this process but a key driver of the transition to a truly circular economy, leveraging technologies like RDF and composting to turn waste into opportunity. We remain committed to delivering sustainable solutions that make a lasting impact. Justin Bott, CEO at Interwaste
