This four-part series aims to provide harmonization, structure, transparency and credibility, helping to determine the eligibility and credibility of green bonds and loans, as well as a robust reporting mechanism for investors.
The principles, specifies requirements and guidelines are set out for:
- green bonds;
- green loans;
- taxonomy;
- verification.
ISO 14030-1 establishes principles, specifies requirements and gives guidelines:
- for designating bonds which finance eligible projects, assets and supporting expenditures as “green”;
- for managing and reporting on the use of proceeds;
- for defining, monitoring and reporting on their environmental impacts;
- for reporting to interested parties;
- for validation and verification.
It is applicable to any issuer of bonds.
ISO 14030-2 establishes principles, specifies requirements and gives guidelines:
- for designating as “green” loans which finance eligible projects, assets and supporting expenditures;
- for managing and reporting on the use of proceeds;
- for defining, monitoring and reporting on the environmental impacts;
- for reporting to interested parties;
- for validation and verification.
It is applicable to any borrower seeking financing by way of a green loan for eligible green projects, assets and supporting expenditures. It is also applicable to lenders.
ISO 14030-3 defines a taxonomy of eligible investment categories for designation as green debt instruments, including bonds and loans. It categorizes economic sectors and establishes criteria for determining the eligibility of projects, assets and supporting expenditures. Annex A provides guidance on adaptation by sector, Annex B provides examples of thresholds and exclusions.
ISO 14030-4 specifies requirements for verification bodies performing verification of claims of conformity to part 1 to 3 (or a suitable substitute taxonomy). Conformity to its requirements is mandatory for the verification of statements made by green debt issuers, borrowers and lenders that claim that their products conform to the ISO 14030 series.
The series was developed under ISO/TC 207/SC 4 Environmental performance evaluation.
Full access to the Scope, Introduction and Terms and Definitions and list of contents used is provided via ISO’s Online Browsing Platform
You can access ISO’s original news item at https://www.iso.org/news/ref2716.html