Knowing that your green, social or sustainability bond framework is aligned to market expectations has become a critical part of the issuance process.
That’s why the world’s leading green, social and sustainability bond issuers, including Fortune 500 companies, sovereigns, foundations and other organizations have looked to Sustainalytics as a trusted second-party opinion provider. Sustainalytics’ second-party opinion service has won multiple awards and continues to be an industry leader, having successfully completed more than 600 projects for issuers and their underwriters.
Learn more about Sustainalytics’ leading second-party opinion service.
Overview of our Second-Party Opinion Service
A second-party opinion (SPO) from Sustainalytics provides investors with assurance that the bond framework is aligned to accepted market principles (e.g. the Green Bond Principles or the Green Loan Principles) and that the proceeds of the bond or loan, as set out in the framework, are aligned to market practices and expectations from the investment community.
Our second-party opinion services can be applied to a variety of bond categories.
Enhance Awareness of Environmental or Social Issues
Issuers/borrowers can highlight their green assets or their work in addressing sustainability goals to investors and other stakeholders.
Meet Growing Investor/Lenders Demand
As the importance of sustainability grows, an increasing number of investors / borrowers are making pledges on climate action and sustainable finance.
Gain Investors’/Lenders Confidence
A Sustainalytics SPO provides additional assurance on the credibility of the issuer/borrower.
Diversify Issuer/Lender Base
The demand for thematic bonds is high and green, social and sustainability bonds tend to be oversubscribed.
Meet Market Expectations
A SPO assesses the alignment of the bond/loan framework with recognized International Capital Market Association’s (ICMA) Principles.
Use of Proceeds, Key Performance Indicators and Sustainability Performance Targets
A SPO assesses the impact of projects to be financed with the bond/ loan proceeds.
Enhance Your Bond Framework
Issuers are continuously under pressure by investors and the market to ensure their bond framework is aligned well past the issuance process. With our Annual Review service, we work with issuers post issuance to ensure that the projects financed and the reporting are aligned with the intended use of proceeds and commitments set out in the bond framework.
Projects are aligned to the eligibility criterial in your framework.
You are reporting on impact metrics as outlined in your framework.
Allocation processes and reporting are as outlined in the bond framework.
Climate Bond Verification
Leading companies are examining their climate-related business risks as well as their role in climate change mitigation. Climate bonds are used to finance projects that address climate change and are aligned with achieving the goals of the Paris Agreement. As a Climate Bonds Standard Board approved external reviewer, Sustainalytics has completed more climate bond verifications than any other external reviewer in the market for 2020
Verify that projects and assets are eligible under relevant sector eligibility criteria and that internal processes and controls exist to manage bond proceeds
Through our assessment, provides issuers with a report stating whether the bond meets the Climate Bonds Standard’s post-issuance requirements
Issuers must annually report on their bond to comply with the Climate Bonds Standard’s post-issuance requirements to maintain a bond’s certification.
Sustainalytics offers issuers the ability to include in its second-party Opinion an additional assessment that aligns the issuer’s bond or loan framework with the EU Taxonomy. Adding the EU Taxonomy to a second-party opinion
assures the market and investors that the bond or loan framework is aligned to the EU’s six environmental objectives, giving confidence and reputability during issuance.
Sustainalytics’ assessment considers the following general requirements for a bond framework’s alignment with the EU taxonomy:
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
25+ Years ESG Expertise
500+ ESG research analysts across our global offices.
Largest Second-Party Opinion Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
Sustainable Finance and Banks: Reduced Risk, Increased Opportunity
Banks will play a key role in the green transition and those that commit to sustainable banking may gain an advantage over competitors, among other benefits. Indeed, banks are uniquely positioned to participate in and benefit from the transition to a green economy.
Instill investor confidence in environmentally- and sustainability-focused bonds with an SPO
Explore our work with issuers, from leading multinational corporations to financial institutions, non-profits, and governments.