Second Party Opinions:
When issuing a green, social, sustainable, or sustainability-linked bond or loan, many issuers obtain a Second-Party Opinion (SPO) on their bond or loan framework from an independent external sustainability expert such as FreeWorld Finance.
An SPO provides potential investors with assurance that the bond or loan is aligned to accepted market principles (e.g. the Green Bond Principles, Sustainability Bond Guidelines, Sustainability-Linked Bond Principles, Green Loan Principles, Social Loan Principles, and Sustainability Linked Loan Principles)* as well as additional expectations from the investor community.
Second Party Opinion Stages
01
Are the projects financed impactful and aligned with the categories outlined in the respective Principles?
02
Is there an internal process to ensure projects are selected as per the eligibility criteria in the framework?
03
Are the disbursements to green/social projects being tracked?
04
Does the issuer intend to disclose the allocation to and impact of the green/social projects financed (post-issuance)?