Vigeo Eiris Launches Enhanced Second-Party Opinion Service for Sustainable Bonds
Enhanced service will enable more impactful communications by issuers and provide increased transparency for investors on expected sustainability impact.
PARIS – 24 JUNE 2020 – Vigeo Eiris (VE), a Moody’s affiliate and leading global provider of environmental, social and governance solutions has launched an enhanced second-party opinion (SPO) service for sustainable bonds. Featuring an updated impact assessment and a more intuitive, impactful format, VE’s enhanced service supports the integrity of the growing market for sustainable bonds by providing independent, transparent, and standards-based expert analysis of their sustainability credentials.
The sustainable bond market has been on a remarkable growth trajectory since the early part of the decade and is vital for connecting capital to sustainability objectives. Sustainable bonds are also set to play a central role in financing the recovery from COVID-19, achieving the Sustainable Development Goals (SDGs), and accelerating action on the energy transition
VE’s enhanced SPO will help issuers communicate effectively on a bond’s sustainability credentials as they seek to secure financing. Investors will benefit from the report’s easily comparable overview on a project’s sustainability and impact, the ESG performance of the issuer, and the level of coherence between the two. This comprehensive and systematic provision of information remains a unique part of the Vigeo Eiris SPO.
The enhanced SPO integrates:
- VE’s new sustainability contribution assessment: This is VE’s opinion on the expected impact of the project on sustainability objectives. This has been developed using the European Union Taxonomy, specifically the ‘Substantial Contribution’ and ‘Do No Significant Harm’ principles. Assessments are provided on a four-point scale (weak, limited, robust, advanced).
- A Sustainable Development Goals Matrix to outline the expected contribution of the project to the SDGs.
- For Green Bond Finance operations, the VE SPO provides information on the alignment of the bond with the key requirements of the European Union’s Green Bond Standard.
- Information on the alignment of the bond with the International Capital Market Association (ICMA) principles.
VE’s new SPO report provides:
- VE’s market-leading comprehensive and systematic overview on the sustainability credentials of a bond, the ESG performance of the issuer, and the level of coherence between the two.
- VE’s opinions are now expressed using harmonized scales to enhance insight and comparability.
- The report continues to contain VE’s detailed reasoned opinion across all dimensions of the SPO to ensure full transparency.
Vigeo Eiris is a leading global provider of second-party opinions and has supported over 200 SPO operations across green, social, sustainability and transition finance themes. The first issuers leveraging the enhanced service will publish SPOs in the coming week. For more information see the contacts below.
Vigeo Eiris is an affiliate of Moody’s. Find out more on Moody’s ESG & Climate Risk hub: https://esg.moodys.io/
Issuers & Investors
Head of Sustainable Finance Services
BecauseESGmatters, ESG, Green bonds