Euro ESG bond & loan issues fall 10% in 2022

A new report by the Association for Financial Markets in Europe (AFME) finds that European bond and loan issuance fell 10% last year.

The key findings in the report are:

  • European ESG bond and loan issuance accumulated €680bn in proceeds during 2022, a 10% annual decline predominantly driven by lower social bond issuance. ESG bonds and loans include ESG-labelled bonds (proceeds-based), sustainable-linked bonds, transition bonds, green-linked loans, and sustainable-linked loans.
  • Green bond issuance grew 6% in 2022 notwithstanding the wider market turbulence of the year.
  • Social bond issuance declined 40% in 2022FY. The strong participation of the French agency CADES did not offset the contraction in European Commission Social bond issuance.
  • Sustainable bond issuance declined 12%FY, which is of similar proportion than the wider market contraction in non-ESG bonds during the year.
  • Sustainable-linked bond declined 16% in 2022 notwithstanding a quarterly record amount in Q1’22.
  • ESG securitisation issuance declined from €8bn in 2021 to €1.2bn in 2022.


  • Global ESG Funds rose during Q4’22, after a sequence of quarterly declines during the first three quarters of the year.
  • Funds with an ESG mandate (including Mutual Funds and ETFs) totalled $7.7tn as of Q4’22 a 18% decrease from Q4’21 ($9.4tn).
  • The full-year contraction was driven predominantly by lower valuations as total outflows accumulated only $1bn during 2022.
  • ESG price premia: spreads of corporate ESG bonds against non-sustainable benchmarks widened in the second half of the year from c1bps at the start of the year to c4bps in November 2022, before returning to c1bps in early 2023.

Read the full report >>