We are expanding our portfolio for Second Party Opinions: On 8 July 2022, we received the status of “Approved Verifier” from the Climate Bonds Initiative (CBI). As a non-profit organisation, CBI is investor-focused and promotes investment in the global low-carbon and climate-resilient economy.
In future, we can verify your financing projects before the issuance (Pre-Issuance Verification) and after the issuance (Post-Issuance Verification). A prerequisite in both procedures is proof by the issuers that eligible projects are in line with CBI’s sector-specific, science-based criteria. We also check whether requirements regarding internal processes and control mechanisms are fulfilled. This includes – in addition to reporting – the use and tracking of the proceeds of the issuance.
What does your certification as “Climate Bond Certified” mean for investors? They are confirmed that the emission proceeds serve climate protection or climate adaptation. For this purpose, CBI has developed its own taxonomy and sector criteria.
- The Climate Bonds Standards & Certification Scheme is a system for the verification of climate bonds and is based entirely on the latest ICMA Green Bond Principles (GBP).
- The Climate Bond Certified label can replace or supplement a Second Party Opinion under the GBP.
- With the Climate Bond Certified label you can additionally prove that your bonds meet the science-based criteria for climate protection and the industry standards for revenue management and transparency.
- The Paris Agreement with the 1.5 degree target is the benchmark for all bonds that we verify according to CBI.
- You appeal to international investors: The Climate Bond Certified label is registered in several countries.
- For investors, certification is a valuable screening tool: the Climate Bond Certified label reduces your effort, replaces subjective assessments and saves you an expensive due diligence check on the sustainability quality of the financial instruments.
What does the verification process look like?
A bond or other debt instrument is usually certified twice: before the issuance and after the issuance. On the one hand, you can already use the label during the pricing and marketing of the bond. And even after the issuance of the bond and the allocation of the proceeds, renewed certification ensures that the label requirements continue to be met. This helps you in your communication with investors.
1. Pre-Issuance Verification
In the first phase, we assess your bond against the pre-issuance requirements of the Climate Bonds Standard: What is the sustainability quality of the bond and your internal processes?
To this end, we examine:
- the fulfilment of sector thresholds
- the selection process for projects and assets
- the internal tracking of revenues
- the system for allocating funds
- reporting information
2. Post-Issuance Verifcation
In the second phase, we evaluate your financing project within twelve months of the issuance. The post-issuance requirements of the Climate Bonds Standard act as a guideline.
For verification, you provide us with your annual report and other certification documents.
What are the key performance features?
- Clear, binding requirements for the use and tracking of proceeds – this includes reporting according to an overarching Climate Bonds Standard.
- Detailed sector criteria and thresholds for low-emission and climate-friendly projects (e.g. solar and wind energy, buildings, transport, water and waste).
- A system of quality assurance that relies on independent verification and clear procedures.
- Certification by the Climate Bonds Standard Board, following the preparation of the verification report.
You want an example?
Take a look at our case study Eurogrid, where we present the certification of a green bond after the issuance.
Did we convince you?
You too want to offer your investors a high-quality green investment product? Then feel free to contact us!
Further information on CBI certification can be found here.