Ratings agency publishes integrated analytical
approach following acquisition of Shades of Green to support
transparency in sustainable debt market.
LONDON, Sept. 14,
2023 /PRNewswire/ -- S&P Global Ratings has
updated its analytical approach for use of proceeds Second Party
Opinions (SPOs) following its December
2022 acquisition of Shades of Green from the CICERO climate
research foundation. The updated approach combines important
features of the methodologies of S&P Global Ratings and Shades
of Green, providing additional transparency to investors that seek
to understand and act upon potential contribution to a sustainable
future.
Lynn Maxwell, Chief Commercial
Officer at S&P Global Ratings, comments: "The launch of our
revised analytical approach for SPOs, combining the best of S&P
Global Ratings and Shades of Green, is an important step as we
strive to provide transparency to the growing sustainable bond
market, which is expected to reach $900
billion-$1 trillion this year.
S&P Global Ratings' SPOs provide customers and the wider market
the benefits of a rigorous, transparent, science-based approach
that includes an instantly comprehensible Shades of Green
assessment."
In the updated analytical approach, S&P Global Ratings
outlines its process for providing SPOs, defines an S&P Global
Ratings Shade of Green and explains how it is assigned to
environmental projects. In addition, it contextualizes how a
sustainable finance project contributes to addressing what we
consider to be the issuer's most material sustainability factors,
as well as its management of additional considerations relevant to
the sustainable financing. The integrated analysis produces four
analytical outputs:
- Alignment assessment: examines whether a financing's
documentation aligns with certain third-party published sustainable
finance principles and guidelines identified by the issuer;
- Shade of green: for green projects, opines on how consistent an
economic activity or financial investment is with a low-carbon,
climate resilient future;
- Issuer sustainability context: opines on how the financing
contributes to addressing what S&P Global Ratings considers to
be the issuer's most material sustainability factors;
- EU Taxonomy assessment: provides an assessment of a financing's
alignment with the EU taxonomy, upon request from an issuer.
SPOs are independent assessments of a company's financing or
framework's alignment with market standards and are typically
provided before any borrowing is raised. They are not credit
ratings, do not consider credit quality, and do not factor into
S&P Global Ratings' credit ratings.
S&P Global Ratings analysts will present the updated
methodology in a freely accessible webinar. (registration here for
AMER/EMEA and here for APAC – a replay will be available.)
Further details and access to the integrated analytical approach
are available here.
About S&P Global Ratings
S&P Global Ratings,
part of S&P Global Inc. (NYSE: SPGI), is the world's leading
provider of independent credit risk research. We publish more than
a million credit ratings on debt issued by sovereign, municipal,
corporate and financial sector entities. With over 1,600 credit
analysts in 27 countries, and more than 150 years' experience of
assessing credit risk, we offer a unique combination of global
coverage and local insight. Our research and opinions about
relative credit risk provide market participants with information
that helps to support the growth of transparent, liquid debt
markets worldwide.
Media
Contacts:
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S&P Global
Ratings
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Orla O'Brien
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Arnaud
Humblot
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Communications
Director, Americas
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Communications
Director, EMEA
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+1
(857).407.8559
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+44 (0) 7817 126
628
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orla.obrien@spglobal.com
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arnaud.humblot@spglobal.com
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SOURCE S&P Global Ratings