The three datasets used for this analysis include data from the Green Bond Database, the Social and Sustainability Bond Database, and the SLB Database of CBI, which provide detailed bond issuance-level information, including the issuer, type of issuing institution, issuance amount, date, country and the use of proceeds (i.e. how funds raised through the bond are used to finance different types of investments). The first two databases cover the GSS bond market. The third dataset focuses on SLBs, a relatively recent type of bond distinct from GSS bonds due to its performance-based structure. The combination of these datasets cover the GSSS bond market (CBI, 2024[1]) (see Figure 2.1). The definitions of each type of bond are available in the first section of this chapter.
The three datasets cover a common time period, from 2015 to 2024. They include all issuances within this timeframe that feature water- or “blue”-related keywords in the issuer-defined original labels, use of proceeds (UoP) descriptions, or key performance indicators (KPIs).
The datasets contain three key variables that allow mapping bond issuance which provide financing for water-related investments: the original bond label, the use of proceeds and the KPIs (the latter being used only for SLBs). The original label assigned by the issuer categorises the bond based on its primary financing objective, which offers insight into the intended purpose of the proceeds. The use of proceeds (UoP) outlines the specific sectors, subsectors or projects that will be financed through the funds raised by the issuance. This chapter relies primarily on the original label to determine whether a bond supports water-related investments, as not all issuances provide detailed UoP descriptions. KPIs are defined exclusively for SLBs. Unlike GSS bonds, which allocate proceeds to specific projects, SLBs do not have a designated use of proceeds. Instead, they are tied to impact objectives, with financial or structural adjustments based on the issuer’s achievement of these targets. Further details on the different types of bonds in the GSSS bond market can be found in the chapter.
In total, 12 092 distinct bond issuances bearing water or blue mentions in their original labels, UoPs or KPIs have been identified in the datasets, amounting to USD 1.6 trillion over the period of 2015-2024. These figures represent the total volume of GSSS bond issuances during this period that were explicitly mapped as water- or blue-related based on their original labels, UoP, or KPIs.
Water and blue labels assigned by bond issuers share similarities but differ in scope. There is no clear distinction between water- and blue-labelled bonds in CBI documentation. The CBI’s Bond Taxonomy categorises water as a sector but does not include blue as a separate classification (CBI, 2021[2]). According to the data, blue-labelled bonds may finance ocean-related UoP, water-related UoP, or a combination of both, whereas water-labelled bonds tend to focus exclusively on investments in water security, such as water supply, water management, and wastewater treatment, and freshwater-related investments.