Green Bond Verification

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Investors managing USD 45 trn of assets have made commitments to climate and responsible investment*.

A Green Bond (also known as a “Climate Bond”) is a debt instrument specifically earmarked to raise money for climate and environmental projects.

A popular green financing tool, the issuance of Green Bonds globally has increased every year from 2015 to 2019. With the diversified range of issuers across different financial institutions, corporations, governments and government-related sectors, there are many new green initiatives on the organizational agenda. With growing environmental awareness, it is thought that the green bond market will see continuous growth in the years to come.

Our Green Bond verification service determines if your bond is in accordance with the CBI Climate Bonds Standard and a range of related requirements.

*Reference: Climate Bonds Initiative

Green Bond Graph

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Benefits of Green Bonds

Green Bonds enable you to:

    ✔ Demonstrate a commitment to environmental protection
    ✔ Cultivate a green innovation culture
    ✔ Attract green investors
    ✔ Diversify your company‚Äôs investor profile
    ✔ Lower finance costs

Enhancing the Credibility of Green Bonds

To address concerns over “greenwashing”, and confirm the credibility and transparency of Green Bonds, the Climate Bonds Initiative (CBI) launched the Climate Bonds Standard and Certification Scheme (the “Scheme”).

The Standard was developed in accordance with the Green Bond Principles published by the International Capital Market Association (“ICMA”). It consists of the following four core components:

  1. Use of proceeds
  2. Process for project evaluation and selection
  3. Management of proceeds
  4. Reporting

To avoid “greenwashing”, the Standard requires bond issuers to select eligible green projects, according to sector eligibility criteria. The sector criteria include:

  • Solar energy
  • Wind energy
  • Low-carbon buildings
  • Low-carbon transport
  • Geothermal energy
  • Water infrastructure
  • Forestry
  • Waste management
  • Marine renewable energy
  • Bioenergy
  • Agriculture
  • Protected agriculture
  • Land conservation and restoration

The Scheme provides various types of certification. It involves pre-issuance certification, post-issuance certification, ongoing certification and programmatic certification.

SGS Verification Service

SGS is a CBI-approved verifier of the Scheme, enabling us to deliver the verification service worldwide.

We verify your bond in accordance with:

  • CBI Climate Bonds Standard
  • International Assurance Engagements ISAE 3000 - Assurance Engagements other than Audits or Reviews of Historical Financial Information
  • Agreed procedures (only applicable for pre-issuance assurance)

SGS Verification Process

1. Issuer 2. SGS 3. Issuer 4. SGS 5. Issuer
Submit Green Bond Framework & project list Review information, devise verification plan & send other information submission requests Follow-up other information submission request Conduct interview & review information

Develop report
Apply for certification & submit report to CBI