IFRS series on sustainability-linked financing

IFRS series on sustainability-linked financing

Fri 18 Nov 2022

As environmental, social and governance concerns are becoming more and more prevalent, sustainable finance is now under the spotlight. The financial sector has a key role to play in achieving the ESG transition. One of the levies developed by the financial industry is to propose new kinds of financing that promote ESG practices and projects amongst corporate businesses. This ‘green”, “social” or “sustainability-linked” financing is growing fast and is raising accounting issues under IFRS that are not fully addressed at the moment.

This series of articles aims to cover the various accounting issues raised by those new financing features from the perspective of both the fund providers and the fundraisers and to follow the latest developments of the IASB on these issues.

Read our first article in the series here.