Financial market participants are increasingly pressurized by stakeholders to place further emphasis on ESG factors within their sectors. Developments such as regulatory pressure, disruption in the financial markets as well as customer preference are compelling many financial services organizations to integrate ESG into the way they conduct business.
Two global systems are currently in use for measuring and verifying the actual green component of Green bond issuances, one is the Climate Bonds Standard, carefully developed by the Climate Bonds Initiative to meet the most stringent requirements, and the other is the ICMA Green Bond Principles standard, which was launched earlier and is also used worldwide. Based on a standard selected according to requirements, KPMG reviews the compliance of the future green bond issues with these standards.
KPMG has “Approved Verifier” status under the Climate Bonds Initiative, the Climate Bonds Standards and Certification Scheme, so as a third-party verifier we are qualified to certify that issuers and bonds meet the requirements of the Climate Bonds Standard.
The Climate Bonds standard and certification scheme is used by bond issuers, governments and investors, as well as by financial markets worldwide, to prioritize investments that make a real contribution to combating climate change. The scheme applies strict, science-based criteria to label bonds, loans and other debt instruments and ensure they meet and are consistent with the goals and commitments of the Paris Agreement. Obtaining certification is not mandatory, but it makes a major contribution to the market recognition of a certified bond.
How can we support you?
Our services include:
- Review as a third-party verifier compliance of the future green bond issues with the Climate Bonds Standard;
- Review as a third-party verifier compliance of the future green bond issues with the ICMA Green Bond Principles standard.
