Sustainable finance has a visibility problem: the ‘E’ in ESG dominates, while the ‘S’ remains sidelined. But inequality, exclusion and social fragility are just as capable of undermining long-term value as carbon emissions. It’s time for finance to see orange.
For over a decade, environmental metrics such as net zero targets, carbon disclosures and renewable energy financing have defined the sustainable finance agenda. In contrast, social outcomes like gender equality, labour rights and community resilience have
received less attention, rigour, and investment. Yet, these social factors are critical to long-term business resilience, market stability and investor confidence.
The rise of orange bonds, a new category of financial instruments focused on gender empowerment and social inclusion, signals a shift toward correcting this imbalance. Inspired by the success of green bonds, they are designed to channel capital into social
impact with the same level of intent, structure and accountability.
Orange bonds started with a simple but powerful idea: when women thrive, economies do too. The data backs it up. Countries that close gender gaps
grow faster, businesses with more women leaders perform better, and communities become more resilient. Yet access to finance remains one of the biggest barriers. Most women-led enterprises still struggle to secure capital on fair terms. Orange bonds flip
that equation by treating inclusion not as charity, but as smart economics.
The momentum behind orange bonds is more than just a trend. It is a growing global movement with clear targets and tangible results. For instance,
the Orange Bond Initiative, aims to issue US
$10 billion by 2030 with the goal of reaching 100 million women and girls through investments that promote gender equality and social empowerment. Investor interest is already beginning to materialise in deals like the
Women’s Livelihood Bond 6, which successfully raised US $100 million to support women-focused enterprises.
While the concept first emerged in Asia, it is now gaining global traction. The
International Finance Corporation’s Social Bond Program has raised more than US $8 billion for inclusive projects, the
African Development Bank has issued gender bonds to support women-led enterprises, and the
Inter-American Development Bank is exploring gender and community-focused structures in Latin America. Together, these initiatives prove that demand for credible, impact-driven social
finance is systemic rather than regional.
Momentum is particularly strong in Asia Pacific and Southeast Asia, where the
Women’s Livelihood Bond series directed public and private capital to women-led enterprises across Cambodia, Vietnam and the Philippines
In this model, philanthropic and development investors take the “first-loss” position to reduce risk for private capital, unlocking funding for underserved communities. This approach shows that
gender-focused investing can scale in developing markets and is starting to influence social finance globally.
Despite this progress,
social bonds still represent only a small proportion of the
US $6 trillion labelled sustainable debt market. Green bonds continue to dominate, in part because environmental outcomes are easier to define and measure. Emissions reductions can be reported in tonnes of CO₂, but measuring gender inclusion, labour standards
or community resilience is more complex, often qualitative and harder to verify. Without consistent metrics and standards, there is a risk that social finance remains fragmented and less credible in the eyes of investors. This is where independent assurance
becomes indispensable. As expectations rise for issuers to manage social risks with the same seriousness as climate targets, assurance provides the external validation needed to build investor confidence. By testing allocation, relevance and ambition of social
Key Performance Indicators (KPIs), assurance helps ensure that capital is linked to real outcomes, not just well-intentioned labels.
Orange bonds may still be in the early stages, but they are emblematic of the evolution needed within sustainable finance. The environmental side of ESG has benefitted from years of alignment around definitions, taxonomies and reporting standards. The social
dimension now requires the same discipline.
The next step is building the ecosystem around orange bonds is having clear rating systems, transparent disclosure rules, credible impact data and better investor awareness. The green bond market did not mature overnight, it took years of alignment, trial
and proof. The social side will need the same patience and precision. But with every new issuance that brings more rigour and accountability, we move closer to a financial system that values people with the same seriousness it values carbon. As more investors
focus on how their capital shapes real outcomes, orange bonds will take their place as a core pillar in sustainable finance.
For orange to truly become the new green, it needs more than good intentions. It needs rigour, transparency, and a shared commitment to proving that social outcomes are real and investable.