Sumit Kumar
The purpose of this systematic review is to explore the performance of sustainable bonds and investigate if there is evidence of the sustainability premium or sustainium. The content of this study is compiled from a review and meta-synthesis of eligible journal articles to review the performance of the sustainable issuance. It further investigates the role of sustainable bond issuances from various integral factors like the current pricing & overall performance approach, policies, role and contribution in achieving sustainability, Investor's sentiments, and its spread in developing countries. Sustainability bonds finance a combination of social and green bonds; hence, yields of both bonds are compared against conventional bonds. The findings showed that sustainability bonds had gained popularity over the last decade because of the capital shift to green capacity. In 2020, the sustainability bonds outperformed conventional bonds because of various factors and drivers. Empirical findings showed that the sustainability bond guidelines, social bond principles, and green bond principles play a vital role in promoting the sustainable bonds market. The review confirmed that sustainable bonds offer a slightly tighter yield than traditional corporate bonds and command a marginally better price.