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Second Party Opinions

Independent, transparent opinions on a company's financing or framework, grounded in our award-winning Shades of Green approach, which assess the extent of contribution to a sustainable future.

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What are Second Party Opinions?



S&P Global Ratings Second Party Opinions, featuring Shades of Green


An S&P Global Ratings Second Party Opinion (SPO) is an independent, point-in-time analysis of a sustainable finance instrument, program, or framework. Our SPOs, backed by the award-winning Shades of Green approach, provide additional transparency to investors that seek to understand and act upon potential contribution to a sustainable future. 


Why choose S&P Global Ratings as your SPO provider?


  • A leading provider of second party opinions 
  • Culture of analytical excellence  
  • Global coverage with sector & local experience 


Our combined global experience of assessing credit risk and sustainable finance and understanding of climate and environmental science uniquely enables us to provide companies with independent, point-in-time second party opinions that deliver the rigor and transparency that investors and lenders demand.


We are where experience in credit meets climate and sustainability excellence.

  • ~800

    Second Party Opinions delivered to date*



    *As of January 2025

  • 160

    Years of experience in providing independent opinions to the markets*



  • 70+

    Sustainable Finance Analysts*



  • 16

    Industry awards received since 2016*



  • Types of Second Party Opinions
  • What do Second Party Opinions on use-of-proceeds financings include?
  • What do Second Party Opinions on sustainability-linked financings include?

Types of Second Party Opinions

Our SPOs are a point-in-time analysis of a sustainable finance instrument, program, or framework and the characteristics of the issuing entity that are relevant for their implementation.  

Second Party Opinion - Use of Proceeds Financing 
Our Use of Proceeds SPOs assess types of sustainable financing where proceeds are allocated to specific environmental or social projects. We offer three types of Use of Proceeds SPOs: green, social, and sustainability.

Second Party Opinion - Sustainability-Linked Financing
Our Sustainability-Linked Financing SPOs assess types of sustainable financing where the proceeds will be used for general corporate purposes, but incorporate measurable, forward-looking key performance indicators which are linked to sustainability performance targets into the financial and/or structural characteristics of the instrument. 


Learn more about our Analytical Approach for Second Party Opinions and the Shades of Green Assessment.

Explore the strategies behind our client success stories: Case Study: Nordic Investment Bank 
What do Second Party Opinions on use-of-proceeds financings include?

Our Use of Proceeds SPOs assess types of sustainable financing where proceeds are allocated to specific environmental or social projects. We offer three types of Use of Proceeds SPOs: green, social, and sustainability.  

Our Use of Proceeds SPO analysis has these key components: 

  • An alignment opinion: Our assessment of whether the financing's documentation aligns with certain third-party published sustainable finance principles and guidelines identified by the issuer. 

  • Shade of Green:  For green projects, our qualitative opinion of how consistent environmental activities eligible for financing are with a low-carbon climate resilient future.  

  • Issuer sustainability context: We comment on whether the financing addresses any of the issuer’s most material sustainability factors, and on the issuer's overall strategy to manage the sustainability factors relevant to the financing.  

  • EU Taxonomy assessment: Upon request from the issuer, we provide an assessment of the alignment of the financing with the EU Taxonomy.  

  • Other optional assessments: Upon request from the issuer, we may comment on consistency with the Climate Transition Finance Handbook (CTFH), the United Nations Sustainable Development Goals (SDGs), ICMA's practitioner's guide for bonds to finance the sustainable blue economy ("blue bonds"), or other external frameworks. 

    View our Analytical Approach for Second Party Opinions.

What do Second Party Opinions on sustainability-linked financings include?

Our Sustainability-Linked Financing SPOs assess types of sustainable financing  where the proceeds will be used for general corporate purposes, but incorporate measurable, forward-looking key performance indicators and sustainability performance targets into the financial and/or structural characteristics of the instrument. 

Our Sustainability-Linked SPO analysis has these key components: 

  • An alignment opinion: Our assessment of whether the financing's documentation aligns with certain third-party published sustainable finance principles and guidelines identified by the issuer. 

  • Issuer sustainability context:  We comment on whether the financing addresses any of the most material sustainability factors for the issuer and comment on whether the issuer’s investment plans are consistent with a sustainable future.

  • Relevance and ambition assessment: We provide an opinion on the relevance of key performance indicators (KPIs) and the ambition of sustainability performance targets (SPTs). 

    • Our relevance assessment is our view of how closely a KPI is linked to what we consider the issuer’s most material sustainability factors.  

    • Our ambition assessment considers whether achieving the SPT represents a significant improvement in the issuer’s sustainability performance and is consistent with the transition to a sustainable future. We consider the trajectory of progress the SPT represents as well as the entity's implementation plan. 

  • Other optional assessments: Upon request from the issuer, we may comment on consistency with the Climate Transition Finance Handbook (CTFH), the United Nations Sustainable Development Goals (SDGs), ICMA's practitioner's guide for bonds to finance the sustainable blue economy ("blue bonds"), or other external frameworks. 

    View our Analytical Approach for Second Party Opinions.

  • Types of Second Party Opinions
    • Types of Second Party Opinions

      Our SPOs are a point-in-time analysis of a sustainable finance instrument, program, or framework and the characteristics of the issuing entity that are relevant for their implementation.  

      Second Party Opinion - Use of Proceeds Financing 
      Our Use of Proceeds SPOs assess types of sustainable financing where proceeds are allocated to specific environmental or social projects. We offer three types of Use of Proceeds SPOs: green, social, and sustainability.

      Second Party Opinion - Sustainability-Linked Financing
      Our Sustainability-Linked Financing SPOs assess types of sustainable financing where the proceeds will be used for general corporate purposes, but incorporate measurable, forward-looking key performance indicators which are linked to sustainability performance targets into the financial and/or structural characteristics of the instrument. 


      Learn more about our Analytical Approach for Second Party Opinions and the Shades of Green Assessment.

      Explore the strategies behind our client success stories: Case Study: Nordic Investment Bank 
  • What do Second Party Opinions on use-of-proceeds financings include?
    • What do Second Party Opinions on use-of-proceeds financings include?

      Our Use of Proceeds SPOs assess types of sustainable financing where proceeds are allocated to specific environmental or social projects. We offer three types of Use of Proceeds SPOs: green, social, and sustainability.  

      Our Use of Proceeds SPO analysis has these key components: 

      • An alignment opinion: Our assessment of whether the financing's documentation aligns with certain third-party published sustainable finance principles and guidelines identified by the issuer. 

      • Shade of Green:  For green projects, our qualitative opinion of how consistent environmental activities eligible for financing are with a low-carbon climate resilient future.  

      • Issuer sustainability context: We comment on whether the financing addresses any of the issuer’s most material sustainability factors, and on the issuer's overall strategy to manage the sustainability factors relevant to the financing.  

      • EU Taxonomy assessment: Upon request from the issuer, we provide an assessment of the alignment of the financing with the EU Taxonomy.  

      • Other optional assessments: Upon request from the issuer, we may comment on consistency with the Climate Transition Finance Handbook (CTFH), the United Nations Sustainable Development Goals (SDGs), ICMA's practitioner's guide for bonds to finance the sustainable blue economy ("blue bonds"), or other external frameworks. 

        View our Analytical Approach for Second Party Opinions.

  • What do Second Party Opinions on sustainability-linked financings include?
    • What do Second Party Opinions on sustainability-linked financings include?

      Our Sustainability-Linked Financing SPOs assess types of sustainable financing  where the proceeds will be used for general corporate purposes, but incorporate measurable, forward-looking key performance indicators and sustainability performance targets into the financial and/or structural characteristics of the instrument. 

      Our Sustainability-Linked SPO analysis has these key components: 

      • An alignment opinion: Our assessment of whether the financing's documentation aligns with certain third-party published sustainable finance principles and guidelines identified by the issuer. 

      • Issuer sustainability context:  We comment on whether the financing addresses any of the most material sustainability factors for the issuer and comment on whether the issuer’s investment plans are consistent with a sustainable future.

      • Relevance and ambition assessment: We provide an opinion on the relevance of key performance indicators (KPIs) and the ambition of sustainability performance targets (SPTs). 

        • Our relevance assessment is our view of how closely a KPI is linked to what we consider the issuer’s most material sustainability factors.  

        • Our ambition assessment considers whether achieving the SPT represents a significant improvement in the issuer’s sustainability performance and is consistent with the transition to a sustainable future. We consider the trajectory of progress the SPT represents as well as the entity's implementation plan. 

      • Other optional assessments: Upon request from the issuer, we may comment on consistency with the Climate Transition Finance Handbook (CTFH), the United Nations Sustainable Development Goals (SDGs), ICMA's practitioner's guide for bonds to finance the sustainable blue economy ("blue bonds"), or other external frameworks. 

        View our Analytical Approach for Second Party Opinions.


Speak with a specialist about our Second Party Opinions

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  • What is the European Green Bond Regulation (EuGBR) and why was it developed?
  • Are you prepared for the requirements of EuGBR?
  • What do S&P Global Ratings European Green Bond External Reviews include?

European Green Bond External Reviews

What is the European Green Bond Regulation (EuGBR) and why was it developed?

The European Green Deal, approved in 2020, aims to achieve climate neutrality in Europe by 2050 and to cut greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels. 

As part of the European Green Deal and action plan on financing sustainable growth, the European Green Bond Regulation, also referred to as the European Green Bond Standard (EuGBS), establishes a voluntary designation for green bonds which fulfil specific requirements related to the use of proceeds, reporting and disclosure. The designation aims to help direct and scale investment towards sustainable economic activities aligned to the EU’s climate and broader environmental goals.  

For issuers and investors, the designation aims to strengthen the integrity, transparency and level of comparability of the sustainable bond market by providing clear definitions of what green means, in line with the EU Taxonomy, and standardizing reporting and disclosure requirements.  

Are you prepared for the requirements of EuGBR?
Issuers seeking a European Green Bond (“EuGB”) designation are required to disclose how they meet the EuGBR requirements pre- and post-issuance. In addition, issuers have to get external reviews of their EuGB pre-issuance Factsheet and post-issuance Allocation Report by an ESMA-registered external reviewer. They also have the option to request an external review of their Impact Report.   
 
S&P Global Ratings Europe formally notified ESMA under article 69 of the EuGBR of its intent to provide services as an external reviewer during the transition period starting December 21, 2024 and is listed on ESMA’s website.
 
S&P Global Ratings brings 160+ years of credit ratings experience in providing independent opinions in complex, regulated markets. We are ready to support you with independent, transparent external reviews to help you navigate the complexity of the EuGBR requirements, so you can make decisions with confidence. 
What do S&P Global Ratings European Green Bond External Reviews include?
The European Green Bond (EuGB) External Reviews are independent, point-in-time analyses of a European Green Bond’s alignment with the pre- and post-issuance requirements of the EuGBR. 
 
Three Types of EuGB External Reviews 
 
EuGB External Reviews may consist of the following three different types: 
  • Pre-issuance Review: We provide an opinion on whether the issuer's pre-issuance EuGB factsheet is complete and aligns with the requirements of the EuGBR. As with our Use-of-Proceeds Second Party Opinions (SPO), our pre-issuance reviews include a section on the Issuer Sustainability Context and a Shades of Green analysis for eligible green projects, and can be combined with a full SPO.  
  • Post-issuance Review: We provide an opinion on whether the issuer has allocated the proceeds in line with the EuGBR's requirements, and whether the issuer's allocation of proceeds is in line with the intended pre-issuance allocation. Our post-issuance reviews include a Shade of Green allocation assessment. 
  • Impact Report Review: We provide an opinion on whether the issuance aligns with the issuer's broader environmental strategy, as well as the indicated environmental impact of the bond's proceeds. According to the EuGBR, an impact report review is optional and not required for alignment. 
 
S&P Global Ratings can provide all three types of EuGB external reviews above. In addition to the features above, all types of reviews include Strengths, Weaknesses, and Areas to Watch in the final report. 
 
For further detail on how we assess alignment to the European Green Bond Regulation, please refer to the Analytical Approach: European Green Bond External Reviews and the accompanying FAQ document.
 
  • What is the European Green Bond Regulation (EuGBR) and why was it developed?
    • European Green Bond External Reviews

      What is the European Green Bond Regulation (EuGBR) and why was it developed?

      The European Green Deal, approved in 2020, aims to achieve climate neutrality in Europe by 2050 and to cut greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels. 

      As part of the European Green Deal and action plan on financing sustainable growth, the European Green Bond Regulation, also referred to as the European Green Bond Standard (EuGBS), establishes a voluntary designation for green bonds which fulfil specific requirements related to the use of proceeds, reporting and disclosure. The designation aims to help direct and scale investment towards sustainable economic activities aligned to the EU’s climate and broader environmental goals.  

      For issuers and investors, the designation aims to strengthen the integrity, transparency and level of comparability of the sustainable bond market by providing clear definitions of what green means, in line with the EU Taxonomy, and standardizing reporting and disclosure requirements.  

  • Are you prepared for the requirements of EuGBR?
    • Are you prepared for the requirements of EuGBR?
      Issuers seeking a European Green Bond (“EuGB”) designation are required to disclose how they meet the EuGBR requirements pre- and post-issuance. In addition, issuers have to get external reviews of their EuGB pre-issuance Factsheet and post-issuance Allocation Report by an ESMA-registered external reviewer. They also have the option to request an external review of their Impact Report.   
       
      S&P Global Ratings Europe formally notified ESMA under article 69 of the EuGBR of its intent to provide services as an external reviewer during the transition period starting December 21, 2024 and is listed on ESMA’s website.
       
      S&P Global Ratings brings 160+ years of credit ratings experience in providing independent opinions in complex, regulated markets. We are ready to support you with independent, transparent external reviews to help you navigate the complexity of the EuGBR requirements, so you can make decisions with confidence. 
  • What do S&P Global Ratings European Green Bond External Reviews include?
    • What do S&P Global Ratings European Green Bond External Reviews include?
      The European Green Bond (EuGB) External Reviews are independent, point-in-time analyses of a European Green Bond’s alignment with the pre- and post-issuance requirements of the EuGBR. 
       
      Three Types of EuGB External Reviews 
       
      EuGB External Reviews may consist of the following three different types: 
      • Pre-issuance Review: We provide an opinion on whether the issuer's pre-issuance EuGB factsheet is complete and aligns with the requirements of the EuGBR. As with our Use-of-Proceeds Second Party Opinions (SPO), our pre-issuance reviews include a section on the Issuer Sustainability Context and a Shades of Green analysis for eligible green projects, and can be combined with a full SPO.  
      • Post-issuance Review: We provide an opinion on whether the issuer has allocated the proceeds in line with the EuGBR's requirements, and whether the issuer's allocation of proceeds is in line with the intended pre-issuance allocation. Our post-issuance reviews include a Shade of Green allocation assessment. 
      • Impact Report Review: We provide an opinion on whether the issuance aligns with the issuer's broader environmental strategy, as well as the indicated environmental impact of the bond's proceeds. According to the EuGBR, an impact report review is optional and not required for alignment. 
       
      S&P Global Ratings can provide all three types of EuGB external reviews above. In addition to the features above, all types of reviews include Strengths, Weaknesses, and Areas to Watch in the final report. 
       
      For further detail on how we assess alignment to the European Green Bond Regulation, please refer to the Analytical Approach: European Green Bond External Reviews and the accompanying FAQ document.
       

Shades of Green

Understand the Transition Spectrum with the Shades of Green: 

Our SPOs provide a view on alignment to relevant market principles (such as ICMA, LMA, EU Taxonomy), and additionally assess the financing’s contribution in the transition to a low carbon future through our shading scale, which includes assigning Dark, Medium or Light shading, as appropriate (for green projects).

Light Green may motivate early movers and helps to recognize transition steps in the near-term, while Dark Green acknowledges those closer to the end of their transition journey. Beyond financing that is ICMA Green Bond Principles or Sustainability Bond Principles aligned, additional shades of Yellow, Orange and Red are also possible, indicating non-alignment.

Learn more about our Shades of Green Approach.

Watch the Video: Explaining the Shades of Green

In the short video above, Christa Clapp, Global Head of Sustainable Finance Markets Analytics and Co-founder of Shades of Green, explains a bit more in depth how we assign the Dark, Medium or Light Green shades for green projects.

Speak with a specialist about our Second Party Opinions

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Second Party Opinions - Public Reports
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Why S&P Global Ratings for your Second Party Opinions?

  • Pioneer in Green Financing Market.

    Largest external reviewer of green financings globally, by volume, and a pioneer in the green financing market – Shades of Green, which is now integrated into S&P Global Ratings, is a pioneer in the green financing market and provided the first green SPO in the market for the World Bank in 2008. S&P Global Ratings brings 160 years of credit ratings experience in providing independent opinions in complex, regulated markets.

  • Credit and Climate Analytical Excellence.

    Our global team of 1,700 credit analysts and 70 sustainable finance analysts brings together credit, climate science, sector and company capabilities in one place. Our SPOs assess an issuer’s sustainability strategy and financing frameworks, and the issuance’s climate risk and extent of contribution to the transition to a low carbon, climate resilient future.

  • Experience in Regulated, Complex Markets.

    We have breadth and diversity of experience with evaluating projects in a variety of sectors, both due to our knowledge (sector, climate, and regional level), and due to our robust SPO methodology. S&P Global Ratings' core experience is as a credit ratings provider dealing in regulated, complex markets.

  • Timely and Efficient.

    We follow a highly efficient, yet analytically rigorous process, allowing clear timelines to access capital markets. Our Second Party Opinions are usually delivered in about 20* business days but can be expedited to 10-15 business days for time-sensitive and straightforward cases.

  • Transparent, Science-based Approach.

    Our award-winning Shades of Green approach provides additional transparency on the use of proceeds to investors that seek to understand contribution to a low carbon climate resilient future. Our methodology is public and shading scale is clearly defined.

  • Award-Winning Shades of Green Approach.

    Recognized as an industry leader in green financing for the Shades of Green approach, both on quality and volume of deals, and winner of multiple industry awards.

Case Study: Nordic Investment Bank

See how the Nordic Investment Bank achieved its objective of attracting green investment by aligning its framework with recognized market standards and obtaining a Shades of Green Second Party Opinion.

View Case Study

*For use-of-proceeds SPOs, from receipt of all necessary documents (additional time may be required, depending on complexity; please allow an additional 10-15 business days for EU Taxonomy Alignment, where applicable). For sustainability-linked SPOs: typically 15 business days from date of sustainability strategy meeting with issuer, with relevant documentation provided at least 3 working days ahead of the meeting. 

Learn more about S&P Global Ratings Second Party Opinions, featuring Shades of Green

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