As the green bond market continues to develop, the complexity of types of green bonds will cause challenges for specialist and mainstream asset managers in determining the sustainability credentials of individual issuances. Increasingly, investors require a second party opinion in order to guide them and invest in green bonds.
We have supported pioneering green bond issuances and contributes to the development of best practice. Our assessment examines at least three aspects of a bond:
- Is there a robust and clearly documented procedure for selecting projects to be included in the bond portfolio?
- Are the funds going towards activities that demonstrate enhanced sustainability performance?
- Are there safeguards are in place, once the bond is issued, that the funds raised will indeed go towards the projects selected?
Our service consists of the following steps:
- Criteria development
- Asset/project screening
- 2nd party opinion
- Annual verification
We provide assurance based on the Green Bond Principles. We are also an accredited certifier with the Climate Bonds Standard. Combining leading technical and operational expertise, risk methodology and in-depth industry knowledge, we ensure trust and confidence is achieved.
Benefits – What do you get?
- An opinion to be published to investors
- A methodology for the selection and measurement of eligible projects
- Tools to track project compliance over the tenor of the bond
- Assistance with investor roadshows, including preparation of FAQs for investors
- Assurance of annual disclosures on the performance of the bond to investors