Second Party Opinion (SPO).
Independent verification of your sustainable financing
The sustainability of the financial sector is in full swing. More and more financial institutions are linking loans and bonds to sustainable objectives. Whether it’s Green Bonds, Social Bonds or Sustainability-Linked Loans: independent verification is essential for a successful issuance. Empact, as a trusted advisor, helps you obtain that needed assurance with a second party opinion (SPO).
What is a second party opinion of ESG financing?
An SPO is an independent assessment of your sustainable finance framework. We assess whether your green bond or sustainable lending framework meets current market standards and investor expectations. Our SPOs offer:
- Verification of ESG KPIs and sustainability targets.
- Review against recognized standards such as the Green Bond Principles
- Assessment of impact and materiality of selected projects
- Analysis of governance and monitoring processes
For whom is an SPO relevant?
An SPO is particularly relevant to:
- Financial institutions that issue Green Bonds or Social Bonds
- Banks Providing Sustainability-Linked Loans.
- Organizations seeking external funding for sustainable projects
- Investment managers integrating ESG criteria into their investment policies
The Empact approach
- Practical support in preparing your funding framework
- Clear explanation of findings and recommendations
- Focus on implementation and continuous improvement
- Very broad Knowledge of both ESG and the financial sector
Our methods and standards
When conducting Second Party Opinions, we use renowned international standards. Depending on the type of financing, we work with two main frameworks:
Sustainability-Linked Loans
For Sustainability-Linked Loans, we follow the SLL Principles developed specifically for Private Equity investments. These principles include five core elements:
- 1. Selection of relevant KPIs.
- 2. Setting sustainability targets (SPTs).
- 3. Linkage to loan terms
- 4. Reporting requirements
- 5. Verification of results
EU Green Bonds
For organizations wishing to issue an EU Green Bond, we offer support on:
- Compiling the prospectus
- Review of the prospectus
- Guidance on external review
- Preparing or auditing the annual allocation report
- Preparing or auditing the annual impact report
Note: Empact is acting here as a consultant and not as a registered external reviewer with ESMA
Apply directly for an SPO for sustainable financing
For a thorough Second Party Opinion on ESG KPIs, in-depth knowledge of both ESG standards and the financial sector is essential. At Empact, we combine in-depth knowledge of ESG standards with practical experience in the financial sector. Please contact us for more information about our services or to request a Second Party Opinion directly.
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