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Second Party Opinions & Transaction Evaluations

S&P Global has acquired the Shades of Green business from CICERO

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What are Second Party Opinions?

S&P Global Ratings provides a variety of Second Party Opinions (SPOs), which are independent assessments of a company’s financing or framework's alignment with market standards and typically provided before any borrowing is raised. Our options include Use-of-Proceeds SPOs (Green, Social, Sustainability) and Sustainability-Linked SPOs.

In December 2022 S&P Global acquired the Shades of Green business from CICERO, further expanding the breadth and depth of our SPO offering. Shades of Green have been championing SPOs in the global green financing market since 2008 after publishing the very first SPO on the World Bank’s Green bond framework and remain the largest external reviewer by volume globally. At the heart of all their SPOs is the multi-award-winning Shades of Green methodology, which assigns shadings to investments and activities to reflect the extent to which they contribute to the transition to a low carbon and climate resilient future.

With S&P Global Ratings' global experience in assessing sustainable finance risk, coupled with Shades of Green’s deep expertise in climate and sustainability, we are ready to help you navigate access to the public and private sustainable debt markets with solutions that deliver the rigor and transparency your investors and lenders demand.

  • $460+

    USD billions in green financing evaluated to date*



    *As of April 2023

  • 500+

    Second Party Opinions delivered to date*



  • 70+

    Sustainable Finance Analysts*



  • 14

    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?
  • Why get one?
  • Public Reports

Second Party Opinions
Second Party Opinion - Use of Proceeds Financing

Assesses a sustainable finance framework or transaction - where the proceeds will be used exclusively to finance or refinance environmental or social projects - for alignment with: ICMA’s Green, Social Bond Principles or Sustainability Bond Guidelines, ASEAN Green Bond Standards, and LMA/APLMA/LSTA’s Green or Social Loan Principles, and EU Taxonomy.

We offer three types of Use of Proceeds SPOs:

  • Green SPOs (Shades of Green, formerly part of CICERO, now a part of S&P Global) 
  • Social SPOs 
  • Sustainability SPOs


Second Party Opinion - Sustainability-Linked Financing

Assesses a sustainable finance framework or transaction - where the proceeds will be used for general corporate purposes but incorporate measurable, forward-looking key performance indicators which are linked to sustainability objectives targets into the financial and/or structural characteristics of the instrument - for alignment with: ICMA’s Sustainability-Linked Bond Principles, LMA’s Sustainability-Linked Loan Principles. 

What do Second Party Opinions on use-of-proceeds financings include?
Types of Use-of-Proceeds Financings 
We offer three types of Use-of-Proceeds Second Party Opinions (SPOs): 



Green SPO: Alignment with Green Bond Principles (GBPs), ASEAN Green Bond Standards (AGBS) and/or Green Loan Principles (GLPs), EU Taxonomy. 
 
Our green SPO assessment is based on the well-established, award-winning Shades of Green methodology, which gives transparent information on how well a green bond/loan aligns with a low-carbon climate resilient future. The Shades of Green (Light/Medium/Dark Green) reflect the extent to which investments and operations contribute to the transition to a low carbon and climate resilient future and their exposure to climate risk. 



Learn more about Shades of Green, formerly part of CICERO, now a part of S&P Global.

Social SPO: Assesses a framework or transaction - where the proceeds will be used exclusively to finance eligible social projects - for alignment with third-party principles, including Social Bond Principles (SBPs) and/or Social Loan Principles (SLPs). 


Sustainability SPO: Assesses a framework or transaction - where the proceeds will be used exclusively to finance eligible environmental or social projects - for alignment with third-party principles, standards and taxonomies, including GBPs/SBPs, Sustainability Bond Guidelines, EU Taxonomy.  


Mapping to the UN Sustainable Development Goals 

For all analytical components we can determine whether they are aligned, or not aligned, with the relevant Principles. In addition, when the Principles make further recommendations for best practices on disclosures and commitments in documentation, or there is an emerging best practice, we can provide an additional opinion on an entity's commitment as satisfactory, strong, or advanced. 



Analysis of EU Taxonomy Alignment (Upon Issuer Request) 

We offer an “Analysis of EU Taxonomy Alignment” as an appendix to an SPO or Transaction Evaluation. We can opine on whether a financing document aligns with the EU Taxonomy in cases when at least one economic activity is covered by Technical Screening Criteria (TSC), which are incorporated into European law via delegated acts. This analysis aims to help readers see how activities that will be funded with proceeds from a financing framework, or a specific transaction, align with the EU Taxonomy. 



For more detail on how we assess EU Taxonomy alignment, please refer to our published Analytical Approach. 

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

Statement of Alignment

Issuer Sustainability Objectives

Principles opinion on:

        • Selection of Key Performance Indicator(s)
        • Calibration of Sustainability Performance Target(s)
        • Instrument Characteristics
        • Reporting
        • Post Issuance Review


Mapping to the UN Sustainable Development Goals

For all analytical components we can determine whether they are aligned, or not aligned, with the relevant Principles. In addition, when the Principles make further recommendations for best practices on disclosures and commitments in documentation, or there is an emerging best practice, we can provide an additional opinion on an entity's commitment as satisfactory, strong, or advanced.

Benefits of a Second Party Opinion for Companies

Demonstrate to stakeholders that your sustainability objectives are aligned to best market practices.

Obtain an independent opinion  that delivers the transparency and rigor investors and lenders demand. 

Independent, research-based evaluations of green financing frameworks, grounded in climate science to determine their environmental robustness .

Mapping of use of proceeds to the UN Sustainable Development Goals.

Navigate access to the public and private sustainable debt markets.

Concise, intuitive reports deliver succinct views to investors.

Public Reports

To view all public reports please click here, or scroll below for the latest reports.

  • Types of Second Party Opinions
    • Second Party Opinions
      Second Party Opinion - Use of Proceeds Financing

      Assesses a sustainable finance framework or transaction - where the proceeds will be used exclusively to finance or refinance environmental or social projects - for alignment with: ICMA’s Green, Social Bond Principles or Sustainability Bond Guidelines, ASEAN Green Bond Standards, and LMA/APLMA/LSTA’s Green or Social Loan Principles, and EU Taxonomy.

      We offer three types of Use of Proceeds SPOs:

      • Green SPOs (Shades of Green, formerly part of CICERO, now a part of S&P Global) 
      • Social SPOs 
      • Sustainability SPOs


      Second Party Opinion - Sustainability-Linked Financing

      Assesses a sustainable finance framework or transaction - where the proceeds will be used for general corporate purposes but incorporate measurable, forward-looking key performance indicators which are linked to sustainability objectives targets into the financial and/or structural characteristics of the instrument - for alignment with: ICMA’s Sustainability-Linked Bond Principles, LMA’s Sustainability-Linked Loan Principles. 

  • What do Second Party Opinions on use-of-proceeds financings include?
    • What do Second Party Opinions on use-of-proceeds financings include?
      Types of Use-of-Proceeds Financings 
      We offer three types of Use-of-Proceeds Second Party Opinions (SPOs): 



      Green SPO: Alignment with Green Bond Principles (GBPs), ASEAN Green Bond Standards (AGBS) and/or Green Loan Principles (GLPs), EU Taxonomy. 
       
      Our green SPO assessment is based on the well-established, award-winning Shades of Green methodology, which gives transparent information on how well a green bond/loan aligns with a low-carbon climate resilient future. The Shades of Green (Light/Medium/Dark Green) reflect the extent to which investments and operations contribute to the transition to a low carbon and climate resilient future and their exposure to climate risk. 



      Learn more about Shades of Green, formerly part of CICERO, now a part of S&P Global.

      Social SPO:       Assesses a framework or transaction - where the proceeds will be used exclusively to finance eligible social projects - for alignment with third-party principles, including Social Bond Principles (SBPs) and/or Social Loan Principles (SLPs). 


      Sustainability SPO: Assesses a framework or transaction - where the proceeds will be used exclusively to finance eligible environmental or social projects - for alignment with third-party principles, standards and taxonomies, including GBPs/SBPs, Sustainability Bond Guidelines, EU Taxonomy.  


      Mapping to the UN Sustainable Development Goals 

      For all analytical components we can determine whether they are aligned, or not aligned, with the relevant Principles. In addition, when the Principles make further recommendations for best practices on disclosures and commitments in documentation, or there is an emerging best practice, we can provide an additional opinion on an entity's commitment as satisfactory, strong, or advanced. 



      Analysis of EU Taxonomy Alignment (Upon Issuer Request) 

      We offer an “Analysis of EU Taxonomy Alignment” as an appendix to an SPO or Transaction Evaluation. We can opine on whether a financing document aligns with the EU Taxonomy in cases when at least one economic activity is covered by Technical Screening Criteria (TSC), which are incorporated into European law via delegated acts. This analysis aims to help readers see how activities that will be funded with proceeds from a financing framework, or a specific transaction, align with the EU Taxonomy. 



      For more detail on how we assess EU Taxonomy alignment, please refer to our published Analytical Approach. 

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

      Statement of Alignment

      Issuer Sustainability Objectives

      Principles opinion on:

            • Selection of Key Performance Indicator(s)
            • Calibration of Sustainability Performance Target(s)
            • Instrument Characteristics
            • Reporting
            • Post Issuance Review


      Mapping to the UN Sustainable Development Goals

      For all analytical components we can determine whether they are aligned, or not aligned, with the relevant Principles. In addition, when the Principles make further recommendations for best practices on disclosures and commitments in documentation, or there is an emerging best practice, we can provide an additional opinion on an entity's commitment as satisfactory, strong, or advanced.

  • Why get one?
    • Benefits of a Second Party Opinion for Companies

      Demonstrate to stakeholders that your sustainability objectives are aligned to best market practices.

      Obtain an independent opinion  that delivers the transparency and rigor investors and lenders demand. 

      Independent, research-based evaluations of green financing frameworks, grounded in climate science to determine their environmental robustness .

      Mapping of use of proceeds to the UN Sustainable Development Goals.

      Navigate access to the public and private sustainable debt markets.

      Concise, intuitive reports deliver succinct views to investors.

  • Public Reports
    • Public Reports

      To view all public reports please click here, or scroll below for the latest reports.


Speak to a specialist about our Second Party Opinions & Transaction Evaluations

Contact Us
  • Gustaf Tegell Senior Portfolio Manager, Pareto Asset Management
    This Sustainability-Linked Framework SPO from S&P Global Ratings focuses on the relevant aspects and is valuable for me as an investor in supporting my investment decisions.
  • What is a Transaction Evaluation?
  • What does it include?
  • Why get one?

What is a Transaction Evaluation?

A Transaction Evaluation provides a point in time score on the relative environmental benefit generated by a green/resilience financing and an opinion on governance and reporting. Green Transaction Evaluation is similar to a pre-issuance impact assessment and is often combined with an Alignment Opinion with: ICMA's Green Bond Principles, ASEAN Green Bond Standards, and LMA/APLMA/LSTA's Green Loan Principles. 

Key Components of Transaction Evaluations

A point-in-time relative impact
score at the transaction level.

Scores projects that are either in a
pre-or post-issuance stage.

Considers a variety of environmental key
performance indicators.

Not limited to issuer self-labelled green bonds.

Governance & Reporting Opinion: Weak,
Satisfactory, Strong, Advanced.

Green Transaction Evaluation can also provide alignment opinion to third-party market standards.
Benefits of a Transaction Evaluation for Companies

Clearly articulate the net environmental benefit of a transaction.

Increase transparency with additional analysis and rationale of key strengths and weaknesses.

Help investors easily compare and benchmark against other sustainable financings.

Differentiate your company from its peers by going beyond the standard external review.
  • What is a Transaction Evaluation?
    • What is a Transaction Evaluation?

      A Transaction Evaluation provides a point in time score on the relative environmental benefit generated by a green/resilience financing and an opinion on governance and reporting. Green Transaction Evaluation is similar to a pre-issuance impact assessment and is often combined with an Alignment Opinion with: ICMA's Green Bond Principles, ASEAN Green Bond Standards, and LMA/APLMA/LSTA's Green Loan Principles. 

  • What does it include?
    • Key Components of Transaction Evaluations

      A point-in-time relative impact
      score at the transaction level.

      Scores projects that are either in a
      pre-or post-issuance stage.

      Considers a variety of environmental key
      performance indicators.

      Not limited to issuer self-labelled green bonds.

      Governance & Reporting Opinion: Weak,
      Satisfactory, Strong, Advanced.

      Green Transaction Evaluation can also provide alignment opinion to third-party market standards.
  • Why get one?
    • Benefits of a Transaction Evaluation for Companies

      Clearly articulate the net environmental benefit of a transaction.

      Increase transparency with additional analysis and rationale of key strengths and weaknesses.

      Help investors easily compare and benchmark against other sustainable financings.

      Differentiate your company from its peers by going beyond the standard external review.

  • Markus Stachel Group Head Investor Relations, DZ Bank
    The Green Evaluation process was very transparent and characterized by mutual understanding of the relevant topics. We had full confidence in S&P’s ability to assess the green assets which formed part of the transaction. The Green Evaluation helped us to successfully place the bond with a wide variety of investors.

Speak to a specialist about our Second Party Opinions & Transaction Evaluations

Contact Us
Second Party Opinions & Transaction Evaluations - Public Reports
VIEW ALL PUBLIC REPORTS

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

  • Experienced.

    Over 500 Second Party Opinions delivered, across bonds, loans, private placement and project financings in various sectors. Largest external reviewer of green financings globally, by volume.

  • Recognized.

    With over 150 years of experience in providing independent opinions to the markets, we deliver the essential intelligence market participants need to make informed decisions with conviction.

  • Pioneer in green financing market.

    Shades of Green, formerly part of CICERO, now a part of S&P Global, delivered the 1st green SPO in the market in 2008 for the World Bank.

  • Credible.

    By integrating Shades of Green into S&P Global Ratings’ Sustainable Finance business, we will have a global team of over 1600 Credit Ratings Analysts and 70 Sustainable Finance Analysts utilizing their climate, sector and company expertise to assess an issuer’s sustainability strategy and financing frameworks.

  • Timely and Efficient.

    Our Second Party Opinions are typically delivered between 10-20 business* days, allowing clear timelines to access the capital markets. Companies can engage us for an SPO, Transaction Evaluation and Credit Rating at the same time enabling a highly efficient execution process.

  • Connected.

    As a leading credit rating agency, we are already actively engaged globally with investors, intermediaries, and key market participants.

  • Award-Winning Shades of Green Methodology.

    Recognized as an industry leader in green financing for the Shades of Green methodology and winner of multiple industry awards including:

Access our latest Sustainable Finance Research

Click Here

*For Transaction Evaluations: 15 business days from receipt of all necessary documents. For green SPOs through Shades of Green, please allow 15-20 business days for delivery. For social and sustainability use-of-proceeds SPO: 10 business days from receipt of all necessary documents (please allow an additional 10-15 business days for EU Taxonomy Alignment, where applicable). For sustainability-linked SPO: 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

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