Green bonds raise funds for new and existing projects which deliver environmental benefits, and a more sustainable economy. ‘Green’ can include renewable energy, sustainable resource use, conservation, clean transportation and adaptation to climate change.
There has been an ever increasing call from investors for greater transparency, disclosure and standardisation of Green Bonds, to ensure bond proceeds are correctly used and requirements of end investors are met. But at the same time, there is a concern that too onerous a level of requirements will deter investors. A balanced approach is required.
To achieve this balance, PwC has been developing some guidance that aligns with the Green Bond Principles and the Climate Bonds Initiative's standards with a view to encouraging a standardised approach. We will be sharing our views on where we think transparency and reporting could be improved, and would like to hear from you what information and assurance will enable you to invest with confidence, and whether such guidance could benefit the market, either as a stand-along document or to be merged into the Green Bond Principles and CBI standards respectively.
Working with the Climate Bonds Initiative (“CBI”) Working Group, helping to bring together verifiers active in the green bonds market with the aim of developing an appropriate reporting and assurance standard to drive consistency in the market. We hosted the first meeting in London in April 2015.
Initiated the formation of The Green Deal Finance Company to make low cost financing and administration of domestic energy efficiency loans (“Green Deals”) available to the UK market climate change targets.
Advised the European Investment Bank on the design and implementation of the London Green Fund, which included investor, project and fund manager market testing and running the procurement process for two fund managers.
Provided assurance over the statement of allocation of the bank’s first Environmental, Social and Governance (“ESG”) Bond, providing investors with comfort that their funds have been allocated to eligible projects. Assurance will be provided on a quarterly basis for the lifetime of the bond.