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{"id":15757,"date":"2023-01-09T11:46:37","date_gmt":"2023-01-09T10:46:37","guid":{"rendered":"https:\/\/www.imug-rating.de\/blog-en\/we-review-reporting-for-green-and-social-bonds\/"},"modified":"2023-03-07T07:53:08","modified_gmt":"2023-03-07T06:53:08","slug":"we-review-reporting-for-green-and-social-bonds","status":"publish","type":"post","link":"https:\/\/www.imug-rating.de\/en\/blog-en\/we-review-reporting-for-green-and-social-bonds\/","title":{"rendered":"We review reporting for green and social bonds"},"content":{"rendered":"\n

Why is an external audit of the report recommended?<\/h4>\n\n

Your issuance was already a year ago and your report is ready for publication? Have your reporting additionally verified \u2013 this way you follow best market practice in line with the International Capital Market Association (ICMA).<\/p>\n\n

ICMA recommends post-issuance external verification of the use of proceeds, environmental or social impact and the alignment of reporting with the Green Bond Principles (GBP).<\/p>\n\n

Independent verification of the report serves transparency and acts as a quality marker for investors \u2013 just like a Second Party Opinion<\/a> before the issuance.<\/p>\n\n

<\/div>\n\n

Provide additional transparency<\/h4>\n\n

Market studies show that investors face a particular challenge in assessing the actual environmental or social impact of bonds.* They have to rely on the information voluntarily disclosed by issuers. This is usually only available after the issuance, when the financed projects are at an advanced stage of development. The reported information is only useful to investors if it simultaneously meets the criteria of relevance<\/strong> and reliability<\/strong>.<\/p>\n\n

This is where external verification comes in: The credibility and consistency<\/strong> of the disclosed information in the report increase significantly when third parties verify the information.<\/p>\n\n

We see particular added value in reports if they consistently and tangibly demonstrate the positive contribution to climate protection or social sustainability. With our verification, we support you in this. Your report will be more credible in the market if it complies with the ICMA guidelines. With our verification, we support you in this. Your report will be more credible in the market if it complies with the ICMA guidelines.<\/p>\n\n

<\/div>\n\n

The requirements for your reporting<\/h4>\n\n

Reporting is a core element of the Green Bond Principles (GBP) from ICMA.** As an issuer, you are required to communicate up-to-date information about the use of proceeds to investors. For example, a report should disclose the following:<\/p>\n\n