The Islamic Development Bank has published an enhanced Sustainable Finance Framework, replacing the version it issued in 2019 and broadening the scope of projects eligible for green and social financing. The updated document aligns the bank's practices with the 2025 editions of the International Capital Market Association's Green Bond Principles and Social Bond Principles.
The revision introduces two new eligible categories: Climate Change Adaptation and Food Security and Sustainable Food Systems. The bank channels development finance across its 57 member countries.
S&P GLOBAL SECOND PARTY OPINION
S&P Global reviewed the framework and issued a Second Party Opinion, dated 30 July 2025, which found the framework aligned with ICMA's 2025 Green Bond and Social Bond Principles and reported no weaknesses. The rating agency assigned Medium Green and Dark Green shading to the majority of the framework's eligible categories, a colour-coding system under S&P Global's Shades of Green methodology that indicates how closely projects align with a low-carbon, climate-resilient future. Dark Green, the highest possible shade, indicates that a project is considered consistent with long-term climate goals.
The framework also continues to cover social projects under the Social Bond Principles.
ALIGNMENT WITH ICMA 2025 PRINCIPLES
The framework is built around the core components of the ICMA principles: use of proceeds, project evaluation and selection, management of proceeds, reporting and external review.