Second-Party Opinion
EQA, ESG verifier, provides the Second-Party Opinion service for the following types of bonds and loans:
Green Bonds
Bonds whose proceeds are used to finance and/or refinance eligible green projects.
Social Bond
Bonds whose resources are used to finance and/or refinance projects with a positive socioeconomic impact.
Sustainable Bond
Bonds whose proceeds are used to finance and/or refinance eligible green and social projects.
Sustainability-linked Bond
Bonds whose financial and/or structural characteristics vary depending on the issuer’s compliance with sustainability objectives.
Green Loan
Financing whose resources are intended to facilitate and support environmentally sustainable economic activity.
Sustainability-linked Loan
Financing whose financial and/or structural characteristics vary according to the compliance of sustainability goals by the borrower.
Social Loan
Financing whose resources are intended to facilitate and support economic activity that mitigates social problems, and/or achieves positive social outcomes.
Other associated services
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Annual Verification
At an ex post stage, EQA provides the following Annual Verification services:
Assignment Report Verification
EQA verifies:
The annual resource allocation report of the bond and/or loan, verifying the amounts allocated to eligible projects, as established in the Framework.
Impact Report Verification
EQA verifies:
The annual bond and/or loan impact report, verifying the outcome of the impact indicators established in the Framework.
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Climate Bond Standard Verification
EQA is an external verifier approved by the Climate Bonds Standard Board, and provides the following verification services:
Pre-Emission Verification
EQA verifies:
- The eligibility of the project portfolio according to the relevant sector.
- Compliance with the pre-issuance requirements of the Climate Bond Standard.
- EQA issues a verification report through which the issuer can access the pre-issuance Climate Bond Certificate.
Post-Issuance Verification
EQA verifies:
- Compliance with the post-issuance requirements of the Climate Bond Standard.
- EQA issues a verification report confirming the Climate Bond Certification.
Verification of Ongoing Reporting
EQA verifies:
- The annual rolling reports issued by issuers to ensure that the bond remains compliant with the requirements of the Climate Bonds Standard.
SPO and Sustainable Bond Verification Projects
Issuer
Type of project
Published projects
Verification Standard
Country
- Verification of Green Bond Allocation Report.
- ISAE 3000
- Climate Bonds Standard
Chile
- Second Party Opinion on Green Financing Framework.
- Climate Bonds Standard
- ICMA Green Bond Principles
Spain
- Second Party Opinion on Social Financing Framework.
- ICMA Social Bond Principles
Colombia
- Second Party Opinion on Social Financing Framework.
- ICMA Social Bond Principles.
- LMA, APLMA and LSTA Social Loan Principles.
Spain
- Second Party Opinion on Sustainability Finance Framework.
- ICMA Sustainability-Linked Bond Principles.
Spain
- Second Party Opinion on Sustainability Finance Framework.
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Principles of the ICMA Sustainability-Linked Bonds.
Spain
- Verification of Sovereign Green Bond Allocation Report.
- ISAE 3000.
- ICMA Green Bond Principles.
Spain
- Second Party Opinion on Sustainability Finance.
Non-public document.
- LMA’s Principles of Sustainability-Linked Lending.
Spain
- Second Party Opinion on Sustainability Finance.
Non-public document.
- LMA’s Principles of Sustainability-Linked Lending.
Spain
- Verification of Sovereign Green Bond Allocation Report.
- ISAE 3000.
- ICMA Green Bond Principles.
Colombia
- Second Party Opinion on the General Framework for Sustainable Emissions.
Non-public document.
- Colombia Green Taxonomy.
- ICMA Green and Social Bond Principles.
Colombia
- Second Party Opinion on Just Transition Financing Framework.
- Climate Transition Handbook.
- ICMA’s Principles for Sustainability-Linked Bonds.
Peru
- Second Party Opinion on Green Financing Framework.
- ISAE 3000.
- LMA Green Lending Principles.
- European Taxonomy of Sustainable Finance.
Spain
- Second Party Opinion on Green Financing Framework.
- LMA Green Lending Principles.
Spain
- Verification of the Resource Allocation Report of the Bono Social 2022.
- ICMA Social Bond Principles.
- LMA, APLMA and LSTA Social Loan Principles.
Spain
Why a Second-Party Opinion is Important
ICMA recommends to issuers of sustainable debt that Green, Social, Sustainable and Sustainability-linked Bond Frameworks are aligned with ICMA’s Green, Social, Sustainable and Sustainability-linked Bond Principles.
Good practice recommends that prior to issuance, the issuer appoints an external reviewer to validate the alignment of the Framework with the main components of the Principles.
The role and influence of the verifier is key in the sustainable finance market. EQA, an ESG verifier and certifier, provides Second-Party Opinion services for sustainable bonds and loans with the objective of providing investor confidence in the environmental and social impact of financial instruments.
EQA verifies under the most recognised frameworks and standards in sustainable finance:
Frequently Asked Questions
What is a Green Bond?
It is any type of bond where the proceeds will be applied exclusively to finance or refinance, in part or in full, eligible new and/or existing green projects that are aligned with the four main components of ICMA’s GBPs.
Eligible green project categories:
- Energy: solar, wind, geothermal, bioenergy, marine renewable energy.
- Transport: private transport, public transport, freight rail.
- Water: monitoring, storage, treatment, distribution, flood defence and solutions.
- Construction: residential and commercial.
- Land use and marine resources: agriculture, silviculture, protection and restoration of natural ecosystems.
- Waste: recycling, reuse, energy from waste, landfill.
What is a Social Bond?
It is any type of bond where the proceeds will be applied exclusively to finance or refinance, in part or in full, new and/or existing eligible social projects that are aligned with the four main components of ICMA’s SBPs.
Eligible social project categories:
- Affordable basic infrastructure: drinking water, sewerage, sanitation, transport, energy.
- Access to essential services: health, education and vocational training; health care, finance and financial services.
- Affordable housing.
- Employment generation and programmes to prevent and/or reduce unemployment resulting from socio-economic crises and SME financing
- Food security and sustainable food systems.
- Socio-economic advancement and empowerment.
What is a Sustainability-Linked Bond?
– Sustainability-linked bonds are any type of bond whose financial and/or structural characteristics vary depending on the issuer’s compliance with pre-defined sustainability objectives.
– The issuer explicitly commits (including in the bond documentation) to an improvement in its sustainability performance within a pre-defined timeframe.
– Sustainability improvements are measured through key performance indicators (KPIs), and these are assessed against pre-defined sustainability performance targets.
– Funds raised through the issuance of a sustainability-linked bond may be used for general corporate purposes.
– Verification, ex-ante and ex-post issuance, is a necessary element of Sustainability-Linked Bonds.
What is a Sustainability-Linked Loan?
– It is a financing whose financial and/or structural characteristics vary depending on the borrower’s compliance with predefined sustainability targets.
– The borrower explicitly commits to an improvement in its sustainability performance within a predefined timeframe.
– Sustainability improvements are measured through key performance indicators (KPIs), and these are assessed against pre-defined sustainability performance targets.
– Resources raised through sustainability-linked funding may be used for general corporate purposes.
– Verification, both ex-ante and ex-post funding, is a necessary element of Sustainability Linked Lending.
What is a Green Loan?
– It is financing whose resources are intended to facilitate and support environmentally sustainable economic activity.
– The Loan Market Association’s Green Loan Principles of February 2021 set out the components for labelling a green loan.
– Verification is a necessary component.
What is a Social Loan?
– It is financing whose resources are intended to facilitate and support economic activity that mitigates social problems, and/or achieves positive social outcomes.
– The Loan Market Association’s Social Loan Principles, April 202, set out the components for labelling a social loan.
– Verification is a necessary component.
Contact us for more information about Second Party Opinion Reports
E-mail: finanzassostenibles@eqa.es
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Tel. +34 913 078 648