Sustainability-Linked Bonds in the Spotlight: Guest Lecture by Dr. Patricia Ruffing-Straube at the University of Zurich

Sustainability-Linked Bonds (SLBs) have emerged as a promising financial instrument to integrate sustainability into corporate financing. Their key feature: the bond's terms—particularly the coupon payments—are directly tied to the achievement of predefined sustainability targets.

After a phase of rapid growth, the SLB market is now facing major challenges. Concerns about the credibility of some issuances and a lack of uniform standards have shaken investor confidence.

Against this backdrop, Dr. Patricia Ruffing-Straube from the University of Zurich presented the findings of a recent empirical study on the future of the SLB market on June 5, 2025. Under the title “Sustainability-Linked Bonds Crisis: Will the label survive?”, she discussed key insights and possible solutions. Her analysis made it clear: The future of the SLB label depends on stricter transparency requirements, binding standards, and consistent measurement of progress.

The event provided valuable insights into the current debate surrounding sustainable financial products and highlighted the importance of scientific research for the further development of responsible capital markets.