Uruguay's Sovereign Sustainability-Linked Bonds (SSLB)
KPI Definitions and SPT Values
Key Performance Indicators (KPIs)
Uruguay has aligned the KPIs of the SSLB to be issued pursuant to this Framework with its international commitments under the Paris Agreement and its strategic focus on climate and nature considerations, and consistent with relevant ICMA requirements. The selected KPIs address two different, but complementary, environmental global public goods: mitigating global warming and preserving a key carbon sink. Both are part of the NDC document submitted by the country to the UNFCCC. By selecting these two KPIs, which are both core, relevant, and material to the country’s sustainability objectives, Uruguay reasserts its commitments to achieving its NDC goals and driving forward several of the United Nations Sustainable Development Goals.
The Framework sets out goals with respect to two Key Performance Indicators (KPIs). The technical sheets lay out the calculation formulas of each KPI.
KPI-1: Reduction of aggregate gross GHG emissions (in CO2 equivalent) per real GDP unit with respect to reference year (in %)
Technical Data Sheet for KPI-1
Technical Data Sheet for Real GDP series
KPI-2: Maintenance of native forest area (in hectares) with respect to reference year (in %)
Technical Data Sheet for KPI-2
Sustainability Performance Targets (SPTs)
Uruguay has established two SPTs for each KPI. All SPTs refer to the same target year 2025. These selected SPTs represent ambitious commitments aligned with the country’s sustainability goals, as detailed below.
SPT 1.1 is aligned with Uruguay’s NDC targets under the Paris Climate Agreement. SPT 1.2 goes beyond the NDC, representing an overachievement of Uruguay’s NDC through an additional 2-percentage point reduction in total GHG emissions per unit of real GDP over the baseline 1990.
SPT 2.1 is aligned with Uruguay’s NDC target to maintain 100 percent of the native forest by 2025 compared to a 2012 baseline. SPT 2.2 goes beyond the NDC target representing an overachievement of Uruguay’s NDC under the Paris Climate Agreement through a 3-percentage point increase in Uruguay’s native forest area in comparison to the 2012 baseline year.