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Sustainable Finance and Reporting
Green, Social and Sustainability Bonds
What are Green, Social & Sustainability Bonds?
01.
Green Bond
Bond instrument, where the proceeds are used to finance or refinance new or existing Green Projects aligned with the Green Bond Principles (GBP)
02.
Social Bond
Bond instrument, where the proceeds are used to finance or refinance new or existing Social Projects aligned with the Social Bond Principles (SBP)
03.
Sustainability Bond
Bond instrument, where the proceeds are used for a combination of Green and Social Projects
Benefits of issuing Green, Social and Sustainability Bonds
- Issuing a green, social or sustainability bond demonstrates leadership and fosters sustainable development while providing long-term finance opportunities.
- From an issuer’s perspective, issuing these types of bonds increases the investor base, such as pension funds and hedge funds.
- From an investor’s standpoint, these types of bonds are becoming increasingly popular, because they can offer the same rates of return as vanilla bonds, but by investing in sustainable projects.
Assurance Process
In order for the Green Bond to be raised, the issuer must produce a Green Bond Framework (GBF) which is written in compliance with the latest version of the GBP or SBP.
The assurance provider will carry out a Second Party Opinion (SPO) confirming whether the GBF is in compliance with the GBF or SBP.
Before the bond is issued, the issuer must obtain an assurance opinion which confirms that the bond documents are in compliance with the GBF.
Twelve months after the bond has been issued, post issuance assurance is required to ensure that the bond proceeds have been used in accordance with what was stated in bond issuance documents and that the funds have been used for approved Green Projects.
Our Services
- Production of the Green Bond Framework (GBF).
- Second Party Opinion (SPO) on the compliance of the Green Bond Framework with the GPB, SBP.
- Pre-issuance Assurance opinion on the intended use of proceeds.
- Post-Issuance Assurance on the actual use of proceeds.
Climate Bonds
What are Climate Bonds?
Climate Bonds are a form of green bond and are used to finance or refinance green projects related to climate change.
Climate Bonds Initiative (CBI)
The CBI is a not-for-profit organisation which has developed the Climate Bonds Standard (CBS), as well as the Climate Bonds Taxonomy. The former sets out criteria for Pre- and Post-Issuance certification, and the technical requirements of the sector criteria for each project type. The Taxonomy describes the different categories of Climate Bonds and specific Project types within them, e.g. the energy category contains, amongst others, solar and wind projects. Only projects which have approved sector criteria can be certified against the CBS.
Certification Process
Certification is carried out in two stages. Pre-Issuance Certification is performed prior to bond issuance, focusing on eligibility of assets and the issuer’s internal processes. Post-Issuance Certification focuses on the actual use of proceeds and reporting. Post-Issuance Certification needs to be performed within 24 months after Bond Issuance.
Our Services
- Pre-Issuance Certification of Climate Bonds against the CBS
- Post-Issuance Certification of Climate Bonds against the CBS
Sustainability Report Assurance
What is a Sustainability Report?
A sustainability report is a formal document published by a company or organisation disclosing the economic, environmental and social impacts related to its business activities. A sustainability report can also serve as a platform to present an organisation’s strategy and values.
Benefits of Sustainability Reporting
Besides legal compliance (e.g. with the EU regulation on Non-Financial Reporting), there are various benefits for your organisation to issue a sustainability report such as:
- Building trust among stakeholders
- Brand Enhancement
- Strategy Development
- Competitive Advantage
- Customer Loyalty
- Access to financial capital
Benefits of Assurance
An independent assurance of your report, aside from risk mitigation, offers various advantages to your business
- Credibility of reported information
- Assessment of systems and processes related to reporting
- Adherence to various reporting guidelines and initiatives (e.g. UNGC, GRI)
- Adherence to local legislation related to CSR Reporting (e.g. 2014/95/EU)
- Identification of opportunities for improvement
Our Services
- Assurance of Sustainability Reports according to ISAE3000 or AA1000AS
