Proposals for new green bond evaluation tool

S&P Global Ratings has launched plans for a new green bond evaluation tool. It will analyse the environmental impact of projects and initiatives financed by bonds. The ‘Green Bond Evaluation […]

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By Jacqueline Echevarria

S&P Global Ratings has launched plans for a new green bond evaluation tool.

It will analyse the environmental impact of projects and initiatives financed by bonds.

The ‘Green Bond Evaluation Tool’ will also identify projects that aim to reduce greenhouse gas emissions and manage the impact of natural catastrophes.

The output would include at least three scores – transparency, governance, mitigation or adaptation, which would be then be weighted into an overall final Green Bond Evaluation, according to the ratings agency.

Furthermore, the agency has also proposed an Environmental, Social and Governance Assessments (ESG) evaluation framework and scoring methodology.

The tool will evaluate a company’s impact on the natural and social environments it inhabits, the governance mechanisms it has in place to oversee effects and potential losses it may face as a result of its exposures to environmental and social risks.