Anthropocene Fixed Income Institute: Sustainability & Japan's GX Bonds | RECAP

Research evidence excerpt

Anthropocene Fixed Income Institute: Sustainability & Japan's GX Bonds | RECAP

Global | Sustainability & Transition Strategy May 11, 2026

Anthropocene Fixed Income Institute:

Sustainability & Japan's GX Bonds | RECAP

Joined by Anthropocene Fixed Income Institute (AFII) to unpack the current

landscape for the GSS fixed income market and better understand the state

of Japan's Transition bonds. KTs: 1) With >$5trn in labeled sustainable

.

debt outstanding, this is the primary channel through which capital is

mobilized for the transition; 2) Green bonds remain the dominant product

in the sustainable debt market; 3) Japan's Transition bonds show limited &

inconsistent premiums.

Session 1: Fireside Chat w/Anthropocene Fixed Income Institute (AFII): Integrate Climate &

Sustainability into Fixed Income

1) Sustainable debt outstanding >$5.5trn — With >$5trn in labeled sustainable debt now

outstanding, our session highlighted that the primary channel through which capital is mobilized

for sustainability and the transition is now debt markets. The speakers emphasized that the bond

market has both the scale and structural influence to reallocate capital towards credible transition

pathways. Through labeled instruments, as well as broader credit allocation decisions, where

investors influence issuers via pricing, refinancing conditions and engagement.

2) Green Bonds & Performance-Linked Structures — While green bonds remain the dominant

labeled product within the sustainable debt market, the session highlighted an evolution toward

sustainability-linked bonds (SLBs) and performance-based instruments.

Session 2: Anthropocene Fixed Income Institute (AFII) – Japan’s GX & Climate Transition Bonds

3) Session 2 focused on Japan's GX Bonds — As we have highlighted previously, Japan has