As we previously noted, this is the most significant year yet for Sustainability-Linked Bond (SLB) target observations, with the largest cohort so far referencing targets from 2025, and reporting is now due.[1] The chart below shows where things stand, using data from Bloomberg on the cohort of bonds with their first observation date in 2025.
Figure 1. Analysis of SLBs with first observation date in 2025 and reporting status. (Note: this data set contains values for all bonds, but where the KPI data is a uniform figure equal to -2.4e-14, we have interpreted this as no reporting). Source: Bloomberg Finance L.P., AFII, accessed 26 May 2026.
Of the 282 bonds in this broad universe, which spans 38 countries, 11 sectors, and 19 currencies, 151 have now reported, representing 68% of total volume outstanding.
The remaining 131 bonds (32% of volume outstanding) are still to report, showing the time lags that often exist in reporting schedules. For example, this cohort includes Uruguay’s SLB,[2] the first sovereign SLB to reach a target observation. Even though updated reporting was released at the end of May, this only covered 2024 data as it is released a year in arrears. It also did not include any updated figure on the forest KPI, where data is given only every four years.
Of those that have reported, 84% by volume outstanding have met all their targets (see graph). By count, the picture is slightly different: 20% of bonds recorded at least one target miss by count, compared to 16% by volume outstanding.
The gap reflects a size dynamic worth noting: bonds below USD300mn equivalent have a 26% miss rate by count among those that have reported, compared to 13.9% by count for larger issuances. Whether this reflects sustainability resource constraints at smaller issuers or differences in target calibration may merit further investigation.
The step-up data offers a counterintuitive observation. A higher percentage of bonds with coupon adjustments above 50bp has reported missed targets than those with lower coupon adjustments.
36% of these high coupon step-up bonds have reported missed targets (four of 11 bonds above 50bp), well above the average for the full universe. They are Tamarack Valley Energy (two bonds at 75bp, Canada),[3] Ampol (100bp, Australia),[4] and Air France-KLM (one bond paying 75bp premium payment, but a second bond paying 50bp, France).[5] This may counter the narrative that higher step-ups offer a greater incentive to achieve the targets.
Sectorally, energy stands out. Of the 11 energy bonds that have reported, nine have recorded at least one target miss, an 82% miss rate by count.
Eni has three bonds in this cohort, all linked to the same renewable installed capacity KPI.[6] Though these bonds (plus one extra bond which had one target in 2024) all use an emissions intensity figure as well, the coupon steps up if any targets are missed.
Vestas, the Danish wind turbine manufacturer, presents a more distinct picture: it has bonds missing targets on Scope 1 and 2 absolute emissions and on a circular economy metric, pointing to a broad decarbonisation challenge.
France accounts for six bond-level misses by count from 16 bonds that have reported, a 38% miss rate by count - among the higher rates for any country with meaningful reporting volume. The misses span sectors: Verallia (glass packaging), Eramet (mining), L’Oréal (consumer goods)[7] and Air France-KLM all feature. L’Oréal’s bond ($1.46bn volume outstanding) missed two of its three KPIs, both absolute Scope 1 and 2 emissions and a cradle-to-shelf Scope 3 intensity target, while narrowly achieving its packaging recyclability goal.
Within materials, the pulp and paper sub-sector is notable: Sappi (South Africa) and Inversiones CMPC (Chile) both recorded target misses. Suzano has three bonds in this cohort, linked to water consumption and GHG intensity targets, all of which Bloomberg reports as having met their targets; however, our analysis of Suzano’s separately observed 2031 bond suggests its GHG intensity SPT was missed.[8]
Japan warrants a separate note. Orient Corp has two bonds in the miss category, both linked to a climate KPI with limited public detail. As our dedicated Japan paper explores,[9] the Japanese SLB market has structural characteristics that set it apart from the global cohort. This includes a higher prevalence of donation-based rather than coupon step-up consequences, and a market still in early stages of performance verification.
The picture that emerges from 2025 reporting so far is broad in geographic and sectoral reach, and granular in what it reveals about where transition progress is on track and where it is taking longer than anticipated. This is precisely the transparency and accountability function that SLBs were designed to provide.
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[1] "A watershed year for the SLB market", AFII, 15 Jul 2025 and "SLBs offer a status check on transition", AFII, 15 Jul 2025.
[2] "Uruguay-ding light in Sovereign SLBs", AFII, 20 Jun 2025.
[3] "A review of social KPI usage in SLBs", AFII, 18 Nov 2025.
[4] "Ampol Sustainability-Linked Perpetual may miss a target", AFII, 22 Jan 2026.
[5] "Air France bonds slow to digest SLB target miss", AFII, 23 Feb 2026.
[6] "Eni: Plenitude divestment may lead to SLB target miss", AFII, 1 Apr 2026.
[7] "L’Oréal misses SLB targets", AFII, 23 Mar 2026.
[8] "Suzano’s 2031 SLB misses target", AFII, 27 Mar 2026.
[9] "Japanese SLBs: 2025 update", 28 Oct 2025.
