Second-Party Opinion on Social Bonds

Create positive impact through social cause

Social Bonds

Leading organization are looking beyond the impact they create from an economical point of view l and are placing an emphasize on the social causes their business impacts. As a result,  sustainable finance projects with positive social outcomes have experienced rapid growth amongst the bond investor community as well as an overall increase in interest from issuers.

Social bonds can be used to finance both public and private demand to create positive social outcomes in communities.

Learn more about Sustainalytics’ social bond second-party opinion service.

Overview of Our Social Bond Service

An SPO from Sustainalytics on your social bond framework will give investors and the market the assurance that your bond is credible by assessing your social bond framework to ensure eligible projects are aligned to the Social Bond Principals (SBP). Common categories of eligible social bond projects that we assess include but are not limited to providing and promoting:  

global infrastructure

Basic infrastructure such as clean drinking water, sanitation and energy.

services

Access to essential services such as healthcare and education.

affordable housing

Access to affordable housing.

affordable housing

Job creation and employment generation.

Food

Availability and Food Security.

Socio economic development

Socio-economic advancement and empowerment.

Contact our expert team to discuss how our leading second-party opinion service can help your social bond issuance.

Key Benefits

Awareness

Enhance Awareness of Social Issues

Issuers can highlight their work in addressing social goals to investors and other stakeholders.

certificate

Meet Growing Investor Demand

As the importance for addressing social issues grows, an increasing number of investors are investing in social conscious companies

measure sustainability

Gain Investor Confidence

An SPO from a trusted ESG ratings provider, like Sustainalytics, provides additional assurance on the credibility of the issuer and the issuance.

Diversify

Diversify Issuer Investor Base

The demand for social bonds has significantly increased and these types of bonds tend to be oversubscribed.

Market expectations

Meet Market Expectations 

An SPO assesses the alignment of the bond’s framework with recognized International Capital Market Association’s (ICMA) Principles.

Use of proceeds

Assess the Use of Proceeds  

An SPO assesses the impact of projects to be financed with the social bond’s proceeds.

Enhance Your Bond Framework

Annual Review

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.

framework

Projects are aligned to the eligibility criterial in your framework.

metrics

You are reporting on impact metrics as outlines in your framework.

process

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

Pre-issuance verification

Pre-issuance verification:

Verify that projects and assets are eligible under relevant sector eligibility criteria and that internal processes and controls exist to manage bond proceeds

Post-issuance verification

Post-issuance verification:

Through our assessment, provides issuers with a report stating whether the bond meets the Climate Bonds Standard’s post-issuance requirements


Ongoing verification

Ongoing verification:

Issuers must annually report on their bond to comply with the Climate Bonds Standard’s post-issuance requirements to maintain a bond’s certification. 


EU Taxonomy

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:

EU Taxonomy

Why Sustainalytics?

Market standard

A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

Award winning

Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

End to end

End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

Expertise

25+ Years ESG Expertise

350+ ESG research analysts across our global offices.

Largest second party opinion provider

Largest Second-Party Opinion Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

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