On 9 December 2020, the International Capital Markets Association (ICMA) - the governing body behind the Green Bond Principles, the Social Bond Principles, Sustainability Bond Guidelines and the Sustainability-Linked Bond Principles - published detailed guidelines on the recommended disclosures that issuers should make on their climate transition strategies to align these with science-based targets when issuing green, social or sustainable bonds and sustainability-linked bonds.
The 'Climate Transition Finance Handbook' importantly clarifies:
1. That relevant disclosures can be included in the issuer’s annual report, framework document, or investor presentation, so long as they are publicly available; and
2. That the recommended independent review, assurance and verifications component can be included as either a Second Party Opinion or otherwise provided and included in the context of an issuer’s ongoing ESG reporting.
“The Climate Transition Finance Handbook is essential complementary guidance for issuers that wish to position their green, sustainability or sustainability-linked bonds within a transparent and science-based climate transition strategy.”