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.