Social KPIs Matter: Setting Meaningful Indicators for Sustainability-Linked Finance

This discussion paper highlights current trends in using social key performance indicators (KPIs) in Sustainability-Linked Finance, focusing on the infrastructure sector. Given the diversity of the sector and evolving nature of SLF itself, this paper does not intend to offer a finite, comprehensive perspective on the use of social KPIs in SLF transactions. Rather, it explores the current landscape and looks ahead at the social issues that might drive the next generation of social KPIs. It offers insights based on IFC’s own experiences to date. The paper aims to stimulate robust and thoughtful discussion among market participants on opportunities and challenges in advancing social KPIs.