Article

Deloitte becomes climate bond approved verifier

Certification of green bonds

Everyone’s talking about climate protection – and rightly so. We’re facing considerable challenges. But there are plenty of ways of effectively making an impact.

Climate protection and the financial sector

Over the past few years, the importance of climate protection has also become increasingly clear on the financial markets with a steep rise in the issue of green bonds, bonds whose returns are used to finance environmentally friendly projects. However, significantly higher investments are needed to achieve the European Union’s climate goals and to limit the rise in the average global temperature to well below 2 degrees celsius. At present, the lack of clear requirements in terms of the evaluation criteria for green bonds and limited transparency for investors are regularly quoted as obstacles to further market growth. Investors can’t reliably judge whether the capital invested actually goes to sustainable, climate-friendly projects, such as the construction of a wind power plant, sustainable waste management, or environmentally friendly transport concepts.

 

Action plan on financing sustainable growth

Which is why the European Commission initiated its action plan on financing sustainable growth to develop a standardised classification system for ecologically sustainable business. On this basis, it wants to develop an EU label for green bonds that is to be based on existing market practice.

 

Climate Bonds Initiative

The Climate Bonds Initiative (CBI) sets key standards in the market for green bonds. It has already developed a label that can be used to identify bonds as certified green instruments. A qualified third party attests that bonds meet rigorous criteria to the Climate Bonds Standard, as defined by the Climate Bonds Initiative, which are based on achieving the 2 degrees celsius warming limit.

 

Deloitte Germany accredited as an approved verifier

On 1 May 2019, Deloitte Germany was granted approved verifier status by the CBI and is therefore authorised to certify bonds in all sectors in accordance with the Climate Bonds Standard. Criteria currently exist, which are specific to different sectors, for solar, wind, geothermal and marine renewable energy sources, energy efficient and low carbon buildings and transport, water and forestry.

  • Philipp von Websky, Director Credit & Securitisation Advisory at Deloitte
    “The link between sustainability and finance is getting stronger at an impressing pace. Certainly, one motive behind that is a sense of responsibility. But the notion, that a sustainable investment strategy can also be rewarding in financial terms, is growing at the same time. We are looking forward to accompanying this segment of paramount importance by contributing quality and trust, combining our best experts from the sustainability and the capital markets side in one team.”
  • Thomas Krick, Head of Sustainability Services at Deloitte
    “Huge sums of investment are needed for the greatest possible slowdown, but also for adaptation to the now unavoidable climate change. Green bonds can make a significant contribution to this effort. We at Deloitte are pleased to join this cause as accredited verifiers within the CBI.”
  • Manuel Adamini, Head of Investor Engagement, Climate Bonds Initiative  “Germany became the fifth largest global source of green bonds in 2018 and interest in green finance is growing. Deloitte Germany will play a key role in assisting green issuers who are adopting best practice via certification. We congratulate them on achieving Approved Verifier status.”

 

Our services

With our team of experts from the Credit & Securitisation Advisory and Sustainability Services divisions, we review pre-issuance and post-issuance requirements in accordance with the Climate Bonds Standard and prepare the reports stipulated to receive CBI certification. To perform the verification efficiently and successfully, we follow a comprehensive approach based on the international ISAE 3000 standard:

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We also advise clients in green bond projects in which we are not in the role of CBI-verifier on green finance matters such as: preparatory considerations and selection, data requirements, sustainability principles and capital market issues.

 

Your Contacts

Philipp von Websky:
pvonwebsky@deloitte.de
+49 211 87723867

Thomas Krick:
tkrick@deloitte.de
+49 151 58071682

Andrea Weber:
andweber@deloitte.de
+49 151 5807 0656

Vinzenz Fundel:
vfundel@deloitte.de
+49 151 58003526

Andrea Flunker:
aflunker@deloitte.de
+49 151 58000694

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