The European Commission also continues work on its Taxonomy, with the latest November version raising some concerns amongst market players. Hopefully 2021 will bring some stability with attempt to regulate the market and reach an agreement between international institutions. Meanwhile, in line with international market views, the new draft of the Chinese Green Bond Endorsed Project Catalogue now excludes the controversial “clean coal” definition.
The Second Party Opinion team at ISS ESG continues work to uphold standards in the sustainable finance market and, amongst 2020’s Q4 issuances, highlights the SPO provided to LafargeHolcim for its sustainability-linked bond, setting ambitious targets for the reduction of its emissions.
By way of background, ISS Corporate Solutions (ICS) works in collaboration with ISS ESG, the responsible investment arm of Institutional Shareholder Services, as the distributor of SPOs. While the SPOs are sold and distributed by ICS, the analytical work to prepare and issue SPOs is performed by ISS ESG.
ISS ESG concluded that the framework and asset pool was positive according to ICMA’s Green Bond Principles and ISS ESG’s Key Performance Indicators.
The issuer also shows good sustainability performance and received a ‘B’ ISS ESG Corporate Rating which classifies as ‘Prime’ status.
ISS ESG provided a SPO for this issuance, with a positive opinion on its alignment with the Green Bond Principles, and the sustainability quality of its projects. The issuer received a ‘C-‘ ISS ESG Corporate Rating, placing it just below the ‘Prime’ threshold of C.
ISS ESG provided a SPO for this issuance and found that the sustainability quality of the project categories was positive and the framework was well aligned with the Social Bond Principles. The categories have a significant contribution to SDGs 3 ‘Good health and well-being’, 4 ‘Quality education’, 10 ‘Reduced inequalities’, 11 ‘Sustainable cities and communities’, and a partial contribution to SDG 7 ‘Affordable and Clean Energy’ and SDG 13 ‘Climate Action’.
The issuer received a ‘C-‘ ISS ESG Corporate Rating, placing it just below the ‘Prime’ threshold of C.