CLIMATE BONDS
STANDARD

Globally recognised, Paris-aligned
Certification of Debt Instruments,
Entities and Assets using robust,science-based methodologies
Updated February 2024
Version 4.1

The Climate Bonds Standard
and Certification Scheme
The Climate Bonds Standard and Certification Scheme is a voluntary labelling scheme
for investments – and now entities – that address the challenge of climate change andare consistent with the goals of the Paris Climate Agreement. The Scheme was launchedin 2012 by the Climate Bonds Initiative, a not-for-profit organisation working to mobilise
global capital for climate action.
The Standard was initially designed to support confidence in the climate change
credentials of green bonds and other debt instruments and to facilitate investment
decision-making. Since the Scheme was launched, over USD300bn of Use of Proceeds
green instruments have been certified under the Climate Bonds Standard. Version 4.1 of
the Standard expands certification coverage to general-purpose instruments (such assustainability-linked bonds), assets and entities.
Certification under this expanded Standard confirms that debt instruments, assets or entities
meet criteria published under the Climate Bonds Standard. Transparently developedscientific criteria underpin the Standard, and a network of Climate Bonds Approved Verifiers
provides independent assessment. An international, independent Climate Bonds Standard
Board, comprised of institutional investor representatives and appointed by the Trustees of
the Climate Bonds Initiative, provides oversight of the Scheme.
This document details the requirements for certification under the Climate Bonds Standard
version 4.1 for all of the following:
A. Use of Proceeds (UoPs) debt Instruments.
The proceeds of such instruments are allocated to specific projects,
assets, activities, or expenditures which align with the Climate Bonds
sector-specific criteria.
B. Assets.
This involves certification of the environmental credentials of
specific projects, assets, or activities, following the Climate Bonds
sector-specific criteria.
C. Non-Financial Legal Entities.
This certification is available to legal entities that provide
non-financial goods and services, or a segregated segment thereof.
This certification covers:
a. Entities that have ambitious Climate Mitigation Performance Targets
that are aligned with the Climate Bonds Sector Criteria at the time of
Certification, or that will align by 2030, and that meet the requirements
for Transition Plan and disclosure, as defined in this Standard; orb. General-purpose debt instruments issued by Certified Entities thatmeet the requirements above.

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D. Sustainability-Linked Debt instruments issued
by non-financial legal entities.
These instruments are eligible for Certification if the Climate
Mitigation Performance Targets linked to them are aligned with
the Climate Bonds Sector Criteria and supported by a Transition Plan
and disclosure requirements that meet the requirements defined inthis Standard.
Sector specific criteria for eligible projects, assets or activities can be found on the
Climate Bonds website, under “Sector Criteria Available for Certification” https://www.
climatebonds.net/standard/available
Resources for Standard users: https://www.climatebonds.net/certification
Contact email for Certification Team: certification@climatebonds.net

Climate Bonds Initiative New Standard v4.1 Disclaimer
Disclaimer: The information contained in this document does not constitute investment advice in any form or any invitation or
inducement to engage in investment activity and the Climate Bonds Initiative is not an investment adviser. Any reference to afinancial organisation or debt instrument or investment product is for information purposes only. Links to external websites arefor information purposes only. The Climate Bonds Initiative accepts no responsibility for any content on any external website.
Certification under the Climate Bonds Standard relates exclusively to the conformity of one or more designated debt instruments,
designated assets and/or designated entities with the applicable Climate Bonds Standard at the time of certification. Certification
under the Climate Bonds Standard carries no implication (and should not be understood as carrying any implication) as to any
other aspect of any debt instrument or investment product or any collection of debt instruments or investment products or any
asset or entity or group of assets or entities or as to continuing conformity at any time after the time of certification. In particular,such certification carries no implication (and should not be understood as carrying any implication) that any stated target has
been or will at any time be met or that any particular legal or regulatory requirement has been or will be satisfied.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or (subject to the previous
paragraph) any other aspect of any debt instrument or investment product or any collection of debt instruments or investment
products or any asset or entity or group of assets or entities and no information within this document should be taken as such,nor should any information in this document be relied upon in making any investment decision.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment
made by an individual or organisation, nor for any investment made by third parties on behalf of an individual or organisation,
based in whole or in part on any information contained within this, or any other Climate Bonds Initiative document.

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Contents
1. Terminology 6
2. Overview of Use of Proceeds
and asset Certification 10
3. Overview of Entity
and SLD Certification 13
4. Approved Verifiers 14
4.1 Professional qualifications
and competence 14
4.2. Special Provisions relating
to Regulated Entities 14
4.3 Verification Report Requirements 14
4.4 Disclosure only on authorizationof the receiver of the certification 15
PART A:USE OF PROCEEDS CERTIFICATION 16
A.1. Introduction 16
A.2. Pre-Issuance requirements 16
A.2.1. Utilisation of Proceeds 16
A.2.2. Process for Evaluation and
Selection of projects and assets 17
A.2.3. Management of Proceeds 17
A.2.4. Pre-Issuance Reporting: Green
Finance Framework and Disclosure
Documentation 17
A.3. Post-Issuance requirements 19
A.3.1 Use of Proceeds 19
A.3.2 Process for Evaluation and
Selection of projects and assets 20
A.3.3 Management of Proceeds 21
A.3.4 Post-Issuance Reporting 21
A.4. Certification Process for
Use of Proceeds Instruments 23
A.4.1 Process outline 23
A.4.2 Pre-issuance Certification 24
A.4.3 Post-Issuance Certification 25
A.4.4 Programmatic Certification 25
A.4.5 Validity of Certification
Label/Mark 27
A.4.6 Maintaining Certification 27
A.4.7 Revocation of Certification 27
PART B.
ASSET CERTIFICATION 29
B.1. Eligibility requirements 29
B.2. Process outline 29
B.3. Static or Dynamic
asset Certification 29

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B.4. Validity of Certification Label/Mark 30
B.4.1 One-off asset Certification 30
B.4.2 Programmatic asset Certification 30
B.5 Revoking Certification 30
PART C:ENTITY CERTIFICATION 31
C.1. Introduction 31
C.2. Eligibility and Accounting Rules 35
C.2.1. Applicant control over
the Certified Entity 35
C.2.2. Boundary of the Certified Entity 35
C.2.3. Obtaining Entity Certification 35
C.2.4. Maintaining Entity Certification 36
C.3. Transition Plan forCompliant Activities 38
C.3.1. Climate Performance 38
C.3.1.1. Climate Mitigation
Performance Targets 38
C.3.1.2. Climate Adaptation& Resilience Performance 39
C.3.2. Delivery Strategy 39
C.3.2.1. Board approval of the
Delivery Strategy 39
C.3.2.2. Foundations 39
C.3.2.3. Implementation plans 39
C.3.3. Governance 40
C.3.3.1. Board and senior executive
responsibility 40
C.3.3.2. (Re)setting and monitoring
the Climate Mitigation Performance
Targets and Delivery Strategy 41
C.3.3.3. Correction ofunderperformance 41
C.4. Commitments of the
Parent Group 41
C.4.1. Exclusions 41
C.4.1.1. Expansion of fossil
fuel activities 41
C.4.1.2. Conversion ofhigh-carbon-stock land 41
C.4.2. Net zero commitment 41
C.4.3. Transition Plans 42
C.5. Disclosure 42
C.5.1. Information to disclose 42
C.5.2. Format of disclosure 424C.6. Extending entity certification tolinked financial instruments 50
C.6.1. Extending entity certification tofinancial instruments linked to the
Climate Mitigation Performance
Targets and Delivery Strategy 50
C.6.2. Extending entity certification
to general purpose debt 50
C.6.3. Revocation of linked certification 50

D.3.3. Governance 60
D.3.3.1. Board and senior
executive responsibility 60
D.3.3.2. (Re)setting and monitoring
the Climate Mitigation Performance
Targets and Delivery Strategy 61
D.3.3.3. Correction ofunderperformance 61
D.4. Commitments of
the Parent Group 61
PART D:D.4.1. Exclusions 61
SUSTAINABILITY-LINKED DEBT 51
D.4.1.1. Expansion offossil fuel activities 61
D.1. Introduction 51
D.2. Eligibility and accounting rules 55
D.4.1.2. Conversion ofhigh-carbon-stock land 61
D.2.1. Issuer control 55
D.2.2. Boundary of economic activities 55
D.4.2. Net zero Commitment 62
D.2.3. Obtaining SLD Certification 55
D.4.3. Transition Plans 62
D.5. Disclosure 62
D.2.4. Maintaining SLD certification 56
D.5.1. Information to disclose 62
D.3. Transition Plan linked
to the SLD instrument 58
D.5.2. Format of disclosure 62
D.3.1. Climate Performance 58
ANNEX 1 70
D.3.1.1. Climate Mitigation
Types of Use of Proceeds Instruments that
Performance Targets 58
can be Certified 70
D.3.1.2. Climate Adaptation &Resilience Performance 59
D.3.2. Delivery Strategy 59
D.3.2.1. Board approval of
the Delivery Strategy 59
D.3.2.2. Foundations 59
D.3.2.3. Implementation plans 59

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1. Terminology
Applicant: A legal Entity applying for Entity Certification or an issuer of a debt instrument
applying for Use of Proceeds or SLD Certification or an asset owner applying for Asset
Certification, under the Climate Bonds Standard.
Approved Verifier (Verifier): An independent third-party assurance or external review
provider approved by the Climate Bonds Standard Board and listed on the Climate Bonds
Initiative website as an Approved Verifier. Only Approved Verifiers are authorised to issue
verification opinions in relation to a certification application in accordance with the Climate
Bonds Standard. The term Approved Verifier in this Standard is understood to include Approved
External Review Providers.
Certification Agreement: A legal agreement must be executed by the Applicant andsubmitted to the Climate Bonds Standard Secretariat as part of the Certification Process.
The Certification Agreement is available from the Climate Bonds website and includes
terms and conditions for using the Certification Mark.
Certified Entity: The entity or part thereof which is being certified under the Climate
Bonds Standard. Currently, Entity Certification is limited to non-financial Entities orsegregated segments thereof, for which the Climate Bonds Initiative has Climate Bonds
Standard Sector Criteria for Entity Certification.
Certification Mark: The certification logo designates a Certified Climate Debt Instrument,
Entity or asset that issuers or Applicants may use once they have obtained Certificationfrom the Climate Bonds Standard Secretariat. The use of the logo is specified within theterms and conditions of the Certification Agreement.
Certification Scheme: A scheme developed by Climate Bonds for awarding the Climate
Bonds Certification label/mark to finance instruments, assets, and entities. The Scheme
consists of the Climate Bonds Standard and the Sector Criteria.
Certified Debt Instrument Any debt instrument certified by the Climate Bonds Standard
Secretariat that meets the Climate Bonds Standard requirements. A certified bond or
certified loan may take the form of one or more tranches of a bond or loan facility. The
accredited tranche(s) must be clearly designated in such cases.
Climate Bonds Information Form: A template document to be completed by the Issuer
and submitted to the Climate Bonds Standard Secretariat as part of the certification
process. The Climate Bonds Information Form is available from the Climate Bonds Initiative
website. The form is used and updated throughout the Certification Process.
Climate Bonds Initiative (Climate Bonds): Climate Bonds is a company limited
by guarantee and a charity registered in England. It is an independent not-for-profit
organisation dedicated to mobilising global capital to deliver climate action.
Climate Bonds Standard (CBS): A robust framework based on international best practicein green finance which defines the processes to be followed and Sector Criteria that must
be met to achieve certification under the Climate Bonds Standard. The current version of
the Climate Bonds Standard is published on the Climate Bonds website.
Climate Bonds Standard Board: An advisory committee set up to review the Standard,
Sector Criteria, applications for certification under the Standard and applications byprospective verifiers and to make recommendations to the Trustees and the executive
management of the Climate Bonds Initiative.

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Climate Bonds Standard Secretariat: Consists of the Climate Bonds Certification Teamand the Climate Bonds Standards Team. The Certification Team manages the day-to-day
interaction with issuers, verifiers, and other stakeholders. Enquiries can be sent via email
to certification@climatebonds.net. The Standards Team drives the process for developing
and maintaining Sector Criteria.
Climate Mitigation Performance Targets: The performance targets that define themeasurable climate mitigation performance to be achieved.
Debt Instrument: Any debt instrument being considered for Certification, whether that bea bond, a loan, or some other type of debt instrument.
Disclosure Documentation: Documentation associated with the issuance of a bond,loan or other debt instrument is prepared before the bond, loan or other debt instrument
is issued or entered into and is made available to potential investors. For debt instrument
issuance, this documentation is usually required by the relevant financial regulatory bodyin the jurisdiction where the bond, loan or other debt instrument is being offered and may
include items such as a prospectus, term sheet, offering memorandum, indenture contract,
official debt instrument statement, or legal documentation. In some jurisdictions, this also
includes marketing materials for the transaction.
Entity: A legal entity, duly incorporated and validly existing in the jurisdiction in which it
operates, providing non-financial goods and services or a segregated segment thereof.
It may or may not include other controlled entities (subsidiaries).
GHG Protocol: The Greenhouse Gas Protocol provides requirements and guidance forcompanies and organizations preparing a corporate-level GHG emissions inventory. The
GHG Protocol covers the accounting and reporting of the seven greenhouse gases coveredby the Kyoto Protocol.
Green Finance Framework: Information provided by the issuer describes how the issuerof the relevant bond, loan or other debt instrument, or programme of bonds, loans or otherdebt instruments will meet the requirements in the Climate Bonds Standard.
Green debt instrument: A green debt instrument where the proceeds will be exclusively
applied to finance or re-finance, in part or complete , new or existing eligible green projects,
and which align with the four core components of the Green Bond Principles, the Green
Loan Principles and the Sustainability-Linked Bond Principles.
Issuer: The organisation issuing the bond or other certified debt instrument; or the
borrower and other obligors taking out the loan or other debt instrument; or the financial
institution receiving designated deposits. The Issuer of a UoP Instrument can be a special
purpose vehicle, a securitisation vehicle, or a trust controlled by the issuing entity.
Investment Exposure: Actual amounts invested/to be invested in eligible projects or assets.
Key Performance Indicator (KPI): External or internal indicators which are undermanagement’s control and are material to an Applicant’s business strategy.
Market Value: The price at which an asset would change hands between a willing buyer
and a willing seller, neither being under any compulsion to buy or to sell and both having
reasonable knowledge of relevant facts. This term is usually defined by convention within
the relevant jurisdiction. It is sometimes called Fair Market Value, Market Value, or Fair
Value, depending on the context. Market Value may be assessed by an independent valuer
or by using an internal valuation model.

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Materiality of Emissions: The Sector Criteria apply materiality thresholds for Scope 1, 2
and 3 emissions on a sectoral basis.
Net Proceeds: The amount equal to the gross proceeds of the bonds, loans, or other debt
instruments minus costs directly linked to the issuance, such as legal fees, accountants’fees, and verification fees. In case the debt instrument is a debt facility with a limit (e.g., arevolving credit facility), the net proceeds in the context of a UoP certification will be equal
to the drawn amount of the facility.
Net Zero Targets: Short-, medium- and long-term targets set by an entity that aims to
reduce its Scope 1, 2 and 3 net greenhouse gas emissions to zero by 2050.
Nominated projects and assets: Eligible projects and assets associated with the bond,loan, or other debt instrument. These projects or physical assets may be existing, underconstruction or yet to be deployed.
Non-Assessed Segment: The part(s) of the Parent Group of the Certified Entity which do
not form part of the Certified Entity and those that form part of the Certified Entity but do
not contribute to the Certified Entity meeting the Certification Threshold per Clause C.2.3
Parent Company/Group: A company is considered a parent company of another entity (asubsidiary) if it exercises control over the subsidiary. The terms “control” and “subsidiary”
have the meaning assigned to them under International Financial Reporting Standard 10(IFRS 10). A Parent Group consists of the Parent Company and all the companies that the
Parent Company exercises control over. Where the Applicant does not belong to a group ofcompanies, the term Parent Company in this Standard applies to the Applicant.
Retroactive Certification: Certification awarded for bonds, loans or other debt
instruments which have already been issued or closed.
Safeguards: The exclusions and conditions that the Parent Company and the Parent
Group must meet in order for the Certified Entity to be eligible for certification.
Sector Criteria (Climate Bonds Standard Sector Criteria): Sector-specific criteria forthe eligibility of specific projects, assets, activities and/ or entities under the Climate Bonds
Standard described in the sector criteria documents.
Sustainability-Linked Debt (SLD): Any debt instrument for which the financial andstructural characteristics can vary depending on whether the issuer achieves predefined
Sustainability/ ESG objectives. Such objectives are measured through predefined KPIs andassessed against predefined performance targets. Proceeds of SLD are intended to be used
for general purposes.
Transition Finance: Any form of financial support to high-carbon companies intended tofinance the implementation of their short-, medium- and long-term plans to achieve net zero.
Transition Plans: The delivery strategy and governance implemented / to be
implemented to achieve the decarbonisation targets represented by the Climate Mitigation
Performance Targets of the Applicant.
Unqualified Opinion: An unqualified assurance or external review opinion by an Approved
Verifier indicates that the Verification Report has been issued with no reservations regarding
the adherence of the Applicant (for UoP instruments, assets, SLD or Entity certification) withthe requirements of the Climate Bonds Standard and Sector Criteria.
Update Report: A document prepared by the issuer that confirms the ongoing
conformance of the issuer and the relevant debt instrument, or programme of debt
instruments with the post-Issuance requirements of the Climate Bonds Standard.

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Use of Proceeds Debt Instruments (UoP Instruments): The proceeds of UoP
instruments are allocated to specific projects or purposes. For this Standard, UoP
Instruments are for environmentally beneficial projects, assets, activities, or expenditures.
Verification Engagement: The work conducted by an Approved Verifier commissionedby an Applicant for Certification to provide a mandatory Verification Report following the
Climate Bonds Standard.
Verification Report: A report prepared by the Approved Verifier, addressed to the Issuer,and provided to the Climate Bonds Standard Secretariat as part of the Certification Process.

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2. Overview of Use of Proceeds
and Asset Certification
2.1 For Use of Proceeds Certifications, the net proceeds of the instrument must be
allocated to any of the following:a. Projects and assets that are fully eligible under the relevant Sector Criteria applicableat the time of certification, orb. Projects and assets, up to a maximum of 5% in accordance with paragraph A.3.1.3.,
which do not fully satisfy the Sector Criteria, but meet the conditions of paragraph A.3.1.5., orc. Eligible R&D expenses in accordance with paragraph vii below.
Asset Certification requires that all projects, assets and portfolios of assets are fully eligible
under the relevant Sector Criteria.
Projects and assets are only eligible under the Standard if all applicable regulatory permits
and licences have been obtained and all related legal requirements and obligations in thejurisdiction where the Issuer/Entity/owner operates have been satisfied.
2.2 Projects or assets which satisfy the eligibility requirements of the Climate Bonds
Standard consist of one or more of the following:
2.2.1. Physical assets or projects owned by an Issuer or an entity which fully satisfy the
Sector Criteria published on the Climate Bonds website. Physical assets or projects include:a. Physical assets: existing and operational equipment, machinery, infrastructure,buildings, or land.
b. Projects: equipment, machinery, infrastructure or buildings in construction, redevelopment(upgrades, expansion) and similar asset value creation or enhancement activity.
2.2.2. Debt or other financing arrangements provided by a lending institution tofinance or facilitate the financing of eligible projects or physical assets, such as corporateloans, retail mortgages, project finance, bank guarantees or performance bonds.
2.2.3. Capital expenditure is undertaken to increase the value and/or lifetime of thephysical assets or projects.
2.2.4. Acquisition costs/purchase price for an entity (company or division) whichholds physical assets or projects or a share thereof that approximately corresponds to theMarket Value of the physical asset or projects holdings.
2.2.5. Leasing structures resulting in right-of-use assets and liabilities and long-termleaseholds on land (with duration greater than 12 months), buildings, and infrastructure.
2.2.6. Subsidies, tax and other incentives, credit schemes and grants, and other similararrangements provided by public entities or agencies, including local and national governments.
2.2.7. Eligible R&D expenditure:a. Any early or later stage expenditure relating to the research, applied research andexperimental development of solutions, processes, technologies, business models
and other products dedicated to the substantial reduction, avoidance or removal of
GHG emissions for which the ability to substantially reduce, remove or avoid GHG
emissions has been demonstrated in a relevant environment, corresponding to at least
Technology Readiness Level (TRL)6.1
1. In line with Annex G of the General Annexes of HORIZON 2020 WORK PROGRAMME 2016 2017, p.29
(version of 4.6.2021: https://ec.europa.eu/research/participants/data/ref/h2020/other/wp/2016-2017/annexes/h2020-wp1617-annex-ga_en.pdf).

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b. For the avoidance of doubt, this includes expenditure related to research, appliedresearch and experimental development to bring the solution, process, technology,
business model or other product through TRLs 1-5. In addition, funds or subsidy
schemes incentivising early stage R&D (TRL1 to TRL5) may be considered eligible if
aiming to bring the solution, product or technology to TRL6.
c. Substantial reduction, removal or avoiding GHG emissions requires the R&D to:i. Provide research, development or innovation for technologies, products or othersolutions that enable an economic asset or activity to meet the respective Sector
Criteria under the Climate Bonds Standard; orii. Aim to bring to market a solution that is expected to have a substantially better
performance in terms of life-cycle GHG emissions than best commercially available
technologies based on public or market information or which substantially improves
their technological and economic feasibility in order to facilitate their scaling up.
d. TRL6 or above must be demonstrated as follows:i. TRL6 requires that the technology is fine-tuned to a variety of operating
conditions, the process is reliable and the performances match the expectations,interoperability with other connected technologies is demonstrated, themanufacturing approach is clearly defined and that all environmental, regulatory
and socio-economic issues are addressed.
ii. Where the researched, developed or innovated technology, product or othersolution is at TRL 6 or 7, life- cycle GHG emissions are evaluated in simplified
form by the entity carrying out the research. The entity demonstrates one of thefollowing, where applicable: (a) a patent not older than 10 years associated withthe technology, product or other solution, where information on its GHG emission
reduction potential has been provided; (b) a permit obtained from a competentauthority for operating the demonstration site associated with the innovativetechnology, product or other solution for the duration of the demonstration project,
where information on its GHG emission reduction potential has been provided.
iii. Where the researched, developed or innovated technology, product or othersolution is at TRL 8 or higher, life- cycle GHG emissions are calculated using
Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 140641:2018 and are verified by an independent third party.
e. Where the R&D expenditure relates to products, solutions or activities for which
Climate Bonds has not yet developed Sector Criteria, the eligibility will be individuallyassessed on a case-by-case basis. In making such assessments Climate Bonds may rely
on independent expert reports or opinions.
f. R&D expenditure must be continually assessed by the Issuer to ensure that therelevant climate-related goals are being achieved. The results of the assessment must
be disclosed in the annual Update Report in accordance with paragraph A.3.4.
g. All R&D expenditure must be independently verified by a Climate Bonds Approved
Verifier at least on an annual basis until the related technology reaches TRL6 or higher.

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2.2.8. Related and supporting expenditures for projects or physical assets where theprojects or physical assets meet the relevant Sector Criteria of the Climate Bonds Standard.
Such non-capitalised costs may include:a. Relevant installation and routine servicing costs are required to ensure the proper
functioning of the asset.
b. Repair and maintenance costs, upgrades or renovations undertaken to maintain thevalue or extend the asset’s life.
c. Relevant performance monitoring costs concerning tracking climate credentials (e.g., GHG
emissions) and climate information services (e.g., satellite monitoring and emissions testing)d. Any training and education costs directly related to activities a. to c. above.

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3. Overview of Entity and SLD Certification
The Standard provides transparent science-based climate mitigation Sector Criteria for
certifying non-financial corporate entities (and parts thereof) and SLD issued by them.
This includes corporates whose emissions are already near zero and those that are not but
undergoing an ambitious and credible transition.
The Certification rules for entities and SLD aim to address the concerns of issuers andinvestors on the burden of due diligence and reporting requirements, respectively,
while maintaining robustness and credibility. They build on existing frameworks
and methodologies. They also emphasise the need for ambitious Climate Mitigation
Performance Targets in line with Paris-aligned climate mitigation goals, credible transition
plans which give confidence in the entity’s ability to meet those targets, and disclosure andverification to enable oversight by investors and other stakeholders.
The Certification rules are based on the five Hallmarks of a credibly transitioning company
first developed by Climate Bonds in 2020 (the “Hallmarks”). The Hallmarks provide anassessment framework to support a company transition that is sufficiently rapid and robust
to align with the Paris goal to nearly halve emissions by 2030 and reach net zero by 2050.
Specifically, the Hallmarks are:i. Paris-aligned targets
ii. Robust plansiii. Implementation action
iv. Internal monitoringv. External reporting
The Hallmarks and these Certification rules move away from relative measures such as bestin class, sector benchmarking or improvements compared to a historic baseline to moreabsolute measures tied to transition pathways that are common to all sector participants.
They require material scope 1, 2, and 3 emissions to be addressed and short-, medium- andlong-term targets to be set and supported by robust transition plans.

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4. Approved Verifiers
4.1 Professional qualifications and competence
Approved Verifiers are professional firms that follow best practice guidelines concerning
ethics, independence, management of conflicts of interest, competence, documentation, andquality controls. Members of the verification teams must have appropriate qualifications andprofessional experience to enable them to conduct their work to a high standard as well as
proven competencies in both financial and environmental/technical fields.
Approved Verifiers must conduct the verification engagements in accordance with
ISAE3000 or an equivalent international standard or an equivalent assessment framework,and must adhere to all applicable legal requirements. Verification Engagements should
also adhere to the ICMA Guidelines for Green, Social and Sustainability Bonds External
Reviews (June 2022) and the LMA Guidance for Green, Social and Sustainability-Linked
Loans External Reviews (March 2022).

4.2 Special Provisions relating to Regulated Entities
Certain types of regulated entities, such as credit rating agencies or other regulatedorganisations which provide external review services, may apply to become Approved External
Review Providers, provided they are subject to publicly disclosed regulatory frameworks andotherwise meet the professional competence requirements of the Standard. Such firms may
opt to issue External Review Reports in accordance with their internal processes and procedures
which will have been assessed by the Climate Bonds Initiative and the Climate Bonds Standard
Board as equivalent to internationally accepted assurance standards.
Firms applying for the Approved External Review Provider status must submit sufficient
documentation on their internal processes and procedures to the Climate Bonds Standard
Board via the Climate Bonds Secretariat to enable this assessment to be made.
In the context of the Standard, the term Approved Verifier will be understood to include
Approved External Review Provider and the term Verification Report will be understood toinclude an External Review Report issued by an External Review Provider.
Existing Climate Bonds Approved Verifiers who meet the relevant criteria may apply tochange their status to Approved External Review Provider.

4.3 Verification Report Requirements
Verification reports must either include an assurance opinion or an external review opinion
regarding the compliance of the debt instrument/asset/entity with the provisions of
the Climate Bonds Standard. Assurance opinions must additionally specify the level ofassurance entailed in the report.
The Applicant must provide all the necessary information about the eligible projects andassets and the internal processes they have in place to the Approved Verifier to support
the assessment of conformance with the Climate Bonds Standard. For Entity and SLB
certifications, the Applicant must provide the Verifier with Transition Plans and othersupporting documents.
Approved Verifiers conduct the Verification Engagement and prepare the Verification
Reports per the guidance for Approved Verifiers provided on the Climate Bonds Initiative
website. The subject matter considered by the Approved Verifiers must include a summaryof how the Issuer has conformed with the requirements set out in the Standard, including
the relevant Sector Criteria.
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4.4 Disclosure only on authorization of the receiverof the certification
Verification Reports submitted to the Climate Bonds Standard Secretariat may be publicly
disclosed only upon the authorization of the Issuer unless the Climate Bonds Standard
Secretariat is required by law or national regulators to make such disclosure. The Climate
Bonds Standard Secretariat must consult with the Applicant and Approved Verifier on thepresentation of the information prior to any public release of any Verification Report.

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PART A: USE OF PROCEEDSCERTIFICATION

A

A.1. Introduction
The requirements for Use of Proceeds certification are separated into Pre-Issuance andPost-Issuance requirements. The Climate Bonds Standard and Certification Scheme buildon the broad integrity principles contained in the ICMA Green Bond Principles.
The Pre-Issuance requirements must be met by Issuers seeking Certification prior
to issuance. Post-Issuance requirements must be met by Issuers seeking continued
Certification following issuance of the bond, loan, or other debt instrument. Issuers canalso apply for Retroactive Certification at any time while the debt instrument is outstanding.
Programmatic Certification is available for frequent Issuers of Certified Debt Instruments.
This option increases flexibility and reduces the verification burden for Issuers with largescale or longer-term finance programmes.
Verification by an Approved Verifier is mandatory in the Certification process. Ongoing
Certification includes requirements for annual reporting through public disclosure.

A.2. Pre-Issuance requirements
This section sets out the requirements that apply to all Certified debt Instruments before
issuing the bond or closing the loan. These requirements are designed to ensure that:i. The Issuer has established appropriate internal processes and controls prior toissuance or closing of the bond, loan, or other debt instrument;
ii. These internal processes and controls are sufficient to enable conformance with the
Climate Bonds Standard after the bond, loan, or other debt instrument has been issued
or has closed and allocation of the proceeds is underway;iii. The Issuer has provided a Green Finance Framework document which explains howeach of the stages involved in issuing a green debt instrument is satisfied (Use of Proceeds,
Process for Project Evaluation and Selection, Management of Proceeds, Reporting)
For Issuers seeking Pre-Issuance Certification of their bond, loan or other debt instrument,
all requirements set out in this section must be met.

A.2.1. Utilisation of Proceeds
A.2.1.1. The Issuer must document the Nominated projects and assets which are eligible
to be associated with the debt instrument. The Issuer must compile a list of Nominatedprojects and assets which must be kept up to date during the term of the Bond.
A.2.1.2. The expected Net Proceeds of the debt instrument must be no greater than theIssuer’s total Investment Exposure to the proposed Nominated projects and assets or
the relevant proportion of the total Market Value of the proposed Nominated projects
and assets owned or funded by the Issuer.
A.2.1.3. Nominated projects and assets must not be nominated to other Certified debt
Instruments, unless the Issuer demonstrates that distinct portions of the Nominatedprojects and assets are being funded by different Certified debt Instruments or, the existing
Certified debt Instrument is being refinanced via another Certified debt Instrument.

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A.2.2. Process for Evaluation and Selection of projects and assets

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A.2.2.1. The Issuer must establish, document, and maintain a decision-making process
which it uses to determine the eligibility of the Nominated projects and assets.
A.2.2.2. The decision-making process must include, without limitation:
i. A statement on the climate-related objectives of the debt instrument.
ii. How the climate-related objectives of the debt instrument are positioned within
the context of the Issuer’s overarching objectives, strategy, policy and/or processes
relating to environmental sustainability.
iii. The Issuer’s rationale for issuing the Bond.
iv. A process to determine whether the Nominated projects and assets meet theeligibility requirements of the Climate Bonds Standard.
v. Related Sector Criteria, including any exclusion criteria and any other process,applied to identify and manage potentially material environmental or governancerisks associated with the Nominated projects and assets.
vi. Any green standards or certifications referenced in the selection of Nominatedprojects and assets.

A.2.3. Management of Proceeds
A.2.3.1. The Issuer must document and disclose to the Approved Verifier the systems,
policies, and processes they will use to manage the Net Proceeds. These must include
arrangements for the following activities:
a. Tracking of proceeds: The Net Proceeds of the debt instrument can be credited
to a sub-account, moved to a sub-portfolio, or otherwise tracked by the Issuer in an
appropriate manner and documented.
b. Managing unallocated proceeds: The balance of unallocated Net Proceeds can be
managed as per the requirements in Clause A.3.3.3.
c. Earmarking funds to Nominated projects and assets: An earmarking process
can be used to manage and account for funding to the Nominated projects andassets and enables estimation of the share of the Net Proceeds being used forfinancing and refinancing.
A.2.3.2. Where the prospectus requires the proceeds to be ring-fenced, they must be
credited to designated bank accounts that can only fund the specified Nominatedprojects and assets. The Issuer must track and monitor all payments from thedesignated bank accounts.

A.2.4. Pre-Issuance Reporting: Green Finance Framework andDisclosure Documentation
A.2.4.1. The Issuer must prepare a Green Finance Framework and make it publicly
available prior to, or at the time of, issuance. The Green Finance Framework must be
provided to the Climate Bonds Standard Secretariat as one of the certification documents.
A.2.4.2. The Green Finance Framework must include:
i. A statement of compliance with the Climate Bonds Standard and/or otherapplicable standards such as the Green Bond Principles or the United Nations
Sustainability Development Goals.
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ii. A summary of the expected use of proceedsiii. A description of the decision-making process for project selection
iv. A description of the Issuer’s processes for managing the proceeds
v. A description of the Issuer’s processes for reporting and external review or verification
A.2.4.3. The Green Finance Framework should also include, without limitation:i. Information on the methodology and assumptions to be used for confirming thatthe characteristics or performance of the Nominated projects and assets conform to
the relevant Sector Criteria, where required, and any other additional impact metrics
that the Issuer will define.
ii. A summary of the approach to manage unallocated Net Proceeds in accordancewith Clause A.3.3.3.
iii. The intended approach to provide Update Reports to reaffirm conformance with
the Climate Bonds Standard while the debt instrument remains outstanding.
iv. The list of proposed Nominated projects and assets associated with the debt
instruments and the investment areas into which the Nominated projects andassets fall. Where there are limits on the detail that can be made publicly available
about specific Nominated projects and assets, information disclosed must include
the investment areas into which the Nominated projects and assets fall and an
explanation of why detail on Nominated projects and assets is limited.
v. Where a proportion of the Net Proceeds are used for refinancing, an estimateof the respective shares of the Net Proceeds used for financing and refinancing,
and the relevant Nominated projects and assets or investment areas which may
be refinanced. This may also include the expected look-back period for refinanced
Nominated projects and assets.
A.2.4.4. Issuers are encouraged to disclose as much information as possible withrespect to Nominated projects and assets. However, in many cases it is not possible
for the Issuer to disclose detailed information about specific projects and assets
prior to the issuance of the Bond. This limitation may be due to confidentiality
arrangements with owners of projects and assets, the dynamic nature of the project
portfolio, competitive considerations, or other legal provisions which limit thedisclosure of detailed information.
A.2.4.5. The Issuer must include in its Disclosure Documentation:
i. The investment areas into which the Nominated projects and assets fall.
ii. The intended types of temporary investment instruments for the management of
unallocated Net Proceeds in accordance with Clause A.3.3.3.
iii. The Approved Verifier engaged by the Issuer for the mandatory
Verification Engagements.
iv. The intended approach to provide Update Reports to reaffirm conformancewith the Climate Bonds Standard while the debt instrument remains outstanding,including the location of the published documents.
v. The Climate Bonds Initiative Disclaimer provided in the Certification Agreement.

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A.3. Post-Issuance requirements
This Section sets out the requirements for all Certified debt Instruments after issuance orclosing which must be met by Issuers seeking Post-Issuance or Retroactive Certification.

A.3.1. Use of Proceeds
A.3.1.1. The Net Proceeds of the debt instrument must be allocated to the Nominatedprojects and assets.
A.3.1.2. All Nominated projects and assets must meet the documented objectives ofthe debt instrument as set out in the Issuer’s Green Finance Framework.
A.3.1.3. Issuers must allocate at least 95% of the net proceeds of the debt instrument toprojects and assets that meet the Sector Criteria requirements of the Standard.
A.3.1.4. For any part of the net proceeds that finance projects and assets that do not
fully satisfy the Sector Criteria requirements (up to 5%), the Issuer must provide detailed
disclosures in the Green Finance Framework.
A.3.1.5. Any Nominated Projects and Assets which do not fully satisfy the Sector Criteria
may be considered eligible if they meet all of the following conditions:i. They must relate to sectors for which Climate Bonds has not yet developed
Sector Criteria; andii. They must fall under any of the Green Project categories listed in the ICMA Green
Bond Principles or the ICMA Social Bond Principles; andiii. The Verification Report opinion must confirm their alignment with the ICMA
Green/Social Bond principles
iv. They must not relate to any of the following excluded activities:• The exploration, extraction or transportation of proven conventional or
unconventional fossil fuel reserves.
• Natural gas production.
• Refining crude oil to produce derivative products.
• The supply and/or use of fossil fuels for power generation and heat.
• Conversion or fragmentation of high-carbon-stock land or unsustainable
operations on high-carbon stock land leading to the loss of its status as highcarbon stock land.
A.3.1.6. The Issuer must allocate the Net Proceeds to the Nominated projects andassets within 24 months of issuance of the debt instrument. The 24-month deadline
can be extended by the Climate Bonds Standard Secretariat for up to 5 years (andexceptionally up to 10 years if duly justified by the nature of the projects to be financed).
An extension will be granted at the discretion of the Climate Bonds Standard Secretariat,
provided the justification for it can be substantiated by the Issuer and confirmed by theApproved Verifier. At the end of the allocation period specified in the Certification, theIssuer must provide a Post-Issuance Verification Report by an Approved Verifier. The
Issuer may be requested to provide annual Post-Issuance Verification Reports until the
Approved Verifier confirms that 100% of the proceeds have been allocated.

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A.3.1.7. Net proceeds may be reallocated to other Nominated projects and assets at
any time while the debt instrument remains outstanding, provided the Approved Verifier
has verified such assets.
A.3.1.8. Nominated projects and assets must not be nominated to other Certified debt
Instruments, unless the Issuer demonstrates that different Certified Climate Bonds are
funding distinct portions of the Nominated projects and assets, or the Certified debt
Instrument is being refinanced via another Certified debt Instrument.
A.3.1.9. Where a proportion of the Net Proceeds of the debt instrument are used forrefinancing, the Issuer must track the respective shares of the Net Proceeds used forfinancing and refinancing and identify which Nominated projects and assets may
be refinanced. This may also include the expected look-back period for refinanced
Nominated projects and assets which should reflect the functional lifetime of the
projects or assets for delivering the stated climate mitigation/ adaptation/ resilience
benefits. The remaining functional lifetime of the financed physical projects or assets
must be equal to or greater than the term of the instrument being certified. The Net
Proceeds may only be used for refinancing operating expenditures that were incurred
within three years prior to the issuance of the Certified Debt Instrument.
A.3.1.10. The Issuer must track the Net Proceeds of the debt instrument following aformal internal process which is documented in accordance with Clause A.3.3.
A.3.1.11. The Net Proceeds of the debt instrument must be no greater than the Issuer’s
total Investment Exposure or debt obligation to the Nominated projects and assets or
the relevant proportion of the total Market Value of the Nominated projects and assets
which are owned or financed by the Issuer. When satisfying this clause, the Issuer may
choose either (i) the Investment Exposure or debt obligation to the Nominated projects
and assets, or (ii) their Market Value.
A.3.1.12. Additional Nominated projects and assets may be added to, or used to substituteor replenish, the portfolio of Nominated projects and assets as long as the additional
Nominated projects and assets are eligible under the Standard and are consistent withthe debt instrument’s objectives. Where additional Nominated projects and assets arecovered by Sector Criteria which were not included in the scope of either the Pre-Issuance
Verification or the Post-Issuance Verification Engagements, the Issuer must engage an
Approved Verifier to provide a Verification Report covering at least the conformance of theadditional Nominated projects and assets with the relevant Sector Criteria.

A.3.2. Process for Evaluation and Selection of projects and assets
A.3.2.1. The Issuer must document and maintain a decision-making process todetermine the continued eligibility of the Nominated projects and assets.
This includes, without limitation:
i. A statement on the climate-related objectives of the Bond.
ii. How the climate-related objectives of the debt instrument are positioned within
the context of the Issuer’s overarching goals, strategy, policy and/or processes
relating to environmental sustainability.
iii. The Issuer’s rationale for issuing the debt instrument.
iv. A process to determine whether the Nominated projects and assets meet thesector eligibility requirements specified of the Standard.
v. Other information provided by the Issuer as described in Clause A.2.2.

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A.3.3.1. The Net Proceeds of the debt instrument must be credited to a sub-account,
moved to a sub-portfolio, or otherwise identified by the Issuer in an appropriatemanner and documented.
A.3.3.2. The debt instrument Issuer must either maintain an earmarking process or
ring-fence the proceeds per Clause A.2.3 to manage and account for the allocation of
Net Proceeds to the Nominated projects and assets.
A.3.3.3. While the debt instrument remains outstanding, the balance of the tracked Net
Proceeds must be reduced by amounts allocated to Nominated projects and assets.
Pending such allocations to Nominated projects and assets, the balance of unallocated
Net Proceeds must be:i. Held in temporary investment instruments that are cash, money-market
instruments or other liquid, short-term cash equivalent instruments within a treasury
function; and/or
ii. Held in temporary investment instruments that do not relate to greenhouse gas
intensive projects or any projects which are inconsistent with the delivery of a low
carbon and climate resilient economy; and/oriii. Applied to temporarily reduce the indebtedness of a revolving nature before being
redrawn for investments in or disbursements to Nominated projects and assets.

A.3.4. Post-Issuance Reporting
A.3.4.1. Following the issuance of a Certified UoP instrument, to maintain theCertification all Issuers must submit annual Update Reports within 12 to 24 months
from the date of issuance of the debt instrument until its maturity. Any Post-Issuance
Verification Report by an Approved Verifier in any year is deemed to satisfy the Issuer’s
requirement to submit an Update Report for that year.
A.3.4.2. The Issuer should also provide an Update Report on a timely basis in case ofmaterial developments. Material developments include, but are not limited to, early
repayment, change of control or acquisition, change of name, changes to the eligibilityof assets and projects and any material amendments to transaction documents,
including any winding-up process or enforcement.
A.3.4.3. Issuers are encouraged to provide their Update Reports through existing bondmarket reporting channels, such as the US Municipality sector’s Electronic Municipal
Market Access (EMMA) website.
A.3.4.4. An Update Report may contain three types of reporting: allocation reporting,eligibility reporting, and impact reporting:i. Allocation reporting confirms the allocation of bond proceeds to eligible projects
and assets and is mandatory for all Certified debt instruments.
ii. Eligibility reporting confirms the characteristics or performance of projects andassets to demonstrate their eligibility under the relevant Sector Criteria and is
mandatory for all Certified debt instruments.
iii. Impact reporting discloses the metrics or indicators which reflect the
expected or actual impact of eligible projects and assets and is encouraged for
all Certified debt instruments.

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A.3.4.5. The three different types of reporting can be included in a single Update
Report, which must be provided to the Climate Bonds Standard Secretariat and madepublicly available or provided annually to the bondholders/lenders for as long as thedebt instrument remains outstanding.
A.3.4.6. The timing of reporting under this clause can be aligned with the Issuer’s
regular reporting schedule and does not need to follow the anniversary of theCertification or issuance of the Bond.
A.3.4.7. The Allocation Reporting must include, without limitation:i. Confirmation that the Bonds issued under the Issuer’s Green Finance Framework
are aligned with the Climate Bonds Standard.
ii. A statement on the climate-related objectives of the Bond.
iii. The list of Nominated projects and assets to which Net Proceeds have been
allocated (or re-allocated).
iv. The amounts allocated to the Nominated projects and assets.
v. An estimate of the respective shares of the Net Proceeds used for financing
and refinancing and which Nominated projects and assets have been refinanced.
This may also include the expected look-back period for refinancing Nominatedprojects and assets.
vi. The geographical distribution of the Nominated projects and assets.
A.3.4.8. The Eligibility Reporting must include, without limitation:i. Confirmation that the Nominated projects and assets continue to meet therelevant eligibility requirements applicable when obtaining the Certification.
ii. Information on the environmental characteristics or performance of Nominatedprojects and assets, which is prescribed by the relevant Sector Criteria.
ii. Where the issuer has made use of the 5% flexibility pocket in accordance with paragraph
A.3.1.3, the percentage of the use of proceeds allocated to, and detailed description of, theNominated projects and assets which do not fully satisfy the Sector Criteria.
A.3.4.9. Some Bonds have a very stable allocation of proceeds and do not need to track
any performance indicators to maintain the eligibility of the projects and assets (suchas financing for a single large-scale solar facility). This means that the annual Update
Report can be concise and restate the information from previous reports.
A.3.4.10. Where there are limits on the detail that can be made available in the Update
Report about specific Nominated projects and assets (as per Clause A.2.4.3), information
disclosed must include the investment areas into which the Nominated projects andassets fall and an explanation of why detail on Nominated projects and assets is limited.
A.3.4.11. The impact reporting shall, without limitation:i. Provide the expected or actual outcomes or impacts of the Nominated projects
and assets concerning the climate-related objectives of the Bond.
ii. Use qualitative performance indicators and, where feasible, quantitative
performance measures of the outcomes or impacts of the Nominated projects andassets for the climate-related objectives of the Bond.
iii. Provide the methods and the key underlying assumptions for the calculation of
the performance indicators and metrics.
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A.3.4.12. Examples of quantitative performance measures of the outcomes of Nominatedprojects and assets can include but are not limited to: renewable energy capacity installed,greenhouse gas emissions avoided, emissions intensity, energy performance of buildings,
number of passengers carried by public transport, volume of wastewater treated. Impact
metrics and indicators can include but are not limited to: greenhouse gas emissions
reduced/avoided, the number of households provided with access to clean power, adecrease in water use, a reduction in the number of cars required.
A.3.4.13. Methods include, but are not limited to, the framework used and thecalculation methodology, including annualized metrics and/or lifetime calculations.
Both institutional and proprietary frameworks may be used: institutional frameworks
may be referenced by name, but proprietary and new frameworks should be describedin sufficient detail to allow assessment.
A.3.4.14. The Issuer must make available to the public or to the bondholders any
Verification Reports or other relevant material which supports the Update Report.

A.4. Certification Process for Use of Proceeds Instruments
A.4.1. Process outline
A.4.1.1. The Certification Process consists of three distinct phases that align with thestandard process for issuing and maintaining any debt instrument. This alignment
enables the use of the Certification Mark during the pricing and marketing of the debt
instrument and during the negotiation of the loan or other debt instrument. Furthermore,
it guarantees that the integrity of the Certification Mark is preserved even after the bond or
loan has been issued or closed and the net proceeds have been allocated.
A.4.1.2. Pre-Issuance Certification: Assessment and Certification of the Issuer’s
internal processes, including its selection process for projects and assets; internal
tracking of proceeds, and the allocation system for net proceeds. This phase includes
the Issuer preparing a Green Finance Framework and a list of eligible projects andassets; verification of the framework and the list by an Approved Verifier; productionof a Verification Report; and provision of certification documents to the Climate
Bonds Standard Secretariat. Pre-Issuance Certification of bonds, loans or other debt
instruments is awarded via a formal letter and a Certificate from the Climate Bonds
Standard Secretariat. The Pre-Issuance Certification covers the period prior to theissuance or closing of the debt instrument. It can assist with marketing the transaction,
provided this period does not exceed 12 months. Pre-Issuance Certification is valid until
Post-Issuance Certification is awarded.
A.4.1.3. Post-Issuance Certification: Assessment and Certification of the bond, loan,
or other debt instrument after it has been issued or has closed. If the bond, loan or otherdebt instrument has been awarded Pre-Issuance Certification, then the Post-Issuance
Certification must be undertaken within the specified allocation period as specified in
Clause A.3.1.3. This phase includes preparation of Post-Issuance updates; verificationof the information by an Approved Verifier; production of a Verification Report; andprovision of certification documents to the Climate Bonds Standard Secretariat. PostIssuance Certification of individual debt instruments is confirmed via a formal letterfrom the Climate Bonds Standard Secretariat.

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A.4.1.4. Ongoing Certification: Maintenance of the Certification based on ongoing
conformance with the Post-Issuance requirements of the Climate Bonds Standard,
including meeting the annual reporting requirements specified in Clause A.3.4.
Maintenance requirements are detailed in Clause A.4.6. Non-conformance provisions
are described in Clause A.4.7.
A.4.1.5. Programmatic Certification is also available for Issuers with large portfolios
of eligible projects, assets, and programmes of multiple Certified deals over several
years. Issuers using Programmatic Certification have a reduced verification burden.
Annual verification by an Approved Verifier is mandatory under Programmatic
Certification. This option is described in detail in Clause A.4.4.

A.4.2. Pre-issuance Certification
A.4.2.1. Preparation for Certification: Issuers seeking Certification and the use of theCertification Mark for a debt instrument prior to issuance shall:i. Prepare a Green Finance Framework (or equivalent document) which describes
how each of the requirements in the Climate Bonds Standard will be met by theIssuer for the relevant debt instrument issuance or programme.
ii. Complete the Climate Bonds Information Form and submit the completed form
to the Climate Bonds Standard Secretariat. The Issuer must identify within the
Climate Bonds Information Form which components of the information provided are
confidential and which components can be publicly disclosed on the Climate Bonds
Initiative website once Certification has been confirmed and issuance of the debt
instrument has been completed. The Issuer may submit a preliminary Climate Bonds
Information Form to the Climate Bonds Standard Secretariat in the case wherecertain information on the debt instrument is unknown at the Pre-Issuance stage.
iii. Engage an Approved Verifier to undertake the Verification Engagement toassess conformance with the Pre-Issuance requirements of the Climate Bonds
Standard. The Approved Verifier engaged by the Issuer must issue a verification
report expressing an unqualified opinion as to whether the Issuer and the
proposed debt instrument have conformed to the Pre-Issuance requirementsof the Climate Bonds Standard.
A.4.2.2. Obtaining Pre-Issuance Certificationi. An Issuer that has completed the Pre-Issuance preparatory steps in Clause A.4.2.1
may apply to the Climate Bonds Standard Secretariat to receive Certification of thedebt instrument under the Climate Bonds Standard by submitting the following
documents: (i) a completed Climate Bonds Information Form (ii) the Green Finance
Framework (or equivalent summary) (iii) the Pre-Issuance Verification Report, and (iv)
an executed Certification Agreement. These documents must be submitted to the
Climate Bonds Standard Secretariat via email (certification@climatebonds.net).
ii. If the Climate Bonds Standard Secretariat is satisfied that the Issuer and proposeddebt instrument are in conformance with the Pre-Issuance requirements, then it shallprovide a statement to the Issuer confirming the Certification of the debt instrument
under the Climate Bonds Standard. Thereafter, the Issuer has the right (subject to theCertification Agreement) to use the Certification Mark in association with the relevant
debt instrument until the Post- Issuance Certification is confirmed.

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A.4.3.1. Preparation for Post-Issuance Certification: Issuers seeking Certificationand the use of the Certification Mark after issuance of the debt instrument shall:i. If Pre-Issuance Certification has previously been confirmed for the Bond, update
the Green Finance Framework and Climate Bonds Information Form to reflect any
relevant changes or clarifications to this information after issuance of the Bond.
ii. If Pre-Issuance Certification has not previously been obtained, prepare a Green
Finance Framework and other documents as described in Clauses A.2.4 and A.4.2.1.
iii. Prepare information and evidence to support the Bond’s ongoing conformancewith the Post-Issuance requirements of the Climate Bonds Standard, including any
ongoing requirements in the relevant Sector Criteria.
iv. Engage an Approved Verifier to undertake a Verification Engagement after issuingthe debt instrument. If Pre-Issuance Certification has previously been confirmed,
then this verification must be completed within two years or other period agreed inaccordance with paragraph A.3.1.6 of the issuance of the Bond.
v. The Issuer may engage the same Approved Verifier to undertake both the Pre-Issuanceand Post-Issuance activities under one commercial arrangement, but this is not mandatory.
A.4.3.2. Obtaining Post-Issuance Certification: If Pre-Issuance Certification has
previously been confirmed, the Issuer must submit the following documents to the
Climate Bonds Standard Secretariat:
i. An updated Climate Bonds Information Form,
ii. The Green Finance Framework (or equivalent summary) as updated,iii. The Verification Report from the Post-Issuance Verification Engagement.
iv. If Pre-Issuance Certification has not been obtained, the Issuer must provide the
Climate Bonds Standard Secretariat with the documents listed in Clause A.4.2.2.
A.4.3.3. If, at the time of issuance of the Post-Issuance Verification Report, the proceeds
have yet to be fully allocated to the Nominated projects and assets, then the Issuer
must provide the relevant explanations. In such an event, the Post-Issuance Verification
process must be repeated at least annually until the proceeds have been fully allocated.
A.4.3.4. If the Climate Bonds Standard Secretariat is satisfied that the Issuer andthe debt instrument are in conformance with the Post-Issuance requirements of the
Climate Bonds Standard, then it shall provide a statement to the Issuer confirming
the Certification of the debt instrument. The Issuer has the right to continue using
the Certification Mark in association with the relevant debt instrument while the debt
instrument remains outstanding.

A.4.4. Programmatic Certification
A.4.4.1. Programmatic Certification allows an Issuer with a portfolio of eligible
projects and assets to issue multiple Certified debt Instruments under the overarchingcertification of the whole programme. Programmatic issuers must have internal
controls in place to ensure the eligibility of any new assets being financed throughthe certified instruments. Multiple issuances relating to the same project/asset areassessed against the version of the Standard and criteria applicable at the outsetof the programmatic process.

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A.4.4.2. To obtain certification of the Program, the Issuer must submit to the Climate
Bonds Standard Secretariat:
i. A Pre-Issuance Verification Report on the eligible projects and assets and thereadiness assessment of the Issuer to comply with the requirements of the Standard
ii. A signed Certification Agreementiii. A copy of the Green Finance Framework
A.4.4.3. The Climate Bonds Standard Secretariat will provide the Issuer with formal
confirmation of Certification of the programme.
A.4.4.4. For every debt instrument issued under the Program, the Issuer must:i. Supply the Climate Bonds Standard Secretariat with a completed Climate Bonds
Information Form for the specific debt instrument issued. The Climate Bonds Standard
Secretariat will provide the Issuer with formal Certificate of the specific instrument.
ii. Following the first issuance under the Program, the Issuer must adopt an annual
Verification Reporting process per Clause A.3.4.(typically 12-24 months after issuanceof the first debt instrument under the Program).
iii. At the end of every subsequent reporting year, the Issuer must provide the
Climate Bonds Standard Secretariat with an updated report from an Approved
Verifier to confirm the continuing eligibility of the projects and assets and theallocation of the proceeds for all the Certified instruments under the programme.
iv. Annual Update reports should include Post-Issuance Verification Reports whererequired until all the proceeds of all Certified bonds under the programme havebeen fully allocated.
v. Once the Post-Issuance certification of all of the instruments in the programme has
been completed, the Issuer need only provide an annual Update Report per Clause
A.4.4 until new instruments are issued under the programme, or the programme has
been completed under Clause A.4.4.4viii below.
vi. The subject matter considered by the Approved Verifier must include the PostIssuance requirements of the Climate Bonds Standard, including the reporting
requirements in Clause A.3.4. It must cover all the debt instruments under the Program.
vii. In the event of changes to the Green Finance Framework during the programme,
the Issuer must supply the Climate Bonds Standard Secretariat with the updated
version of the annual Verification Report.
viii. Any Programmatic Certification programme is considered completed
at the latest of:a. Five years from the issuance of the first debt instrument under the programme; andb. Two years from the most recent debt instrument issuance for which the post
issuance verification has been completed
A.4.4.5. After completing the Programmatic process, the Issuer is no longer
required to engage the Approved Verifier annually to conduct verification of the debt
instrument programme. However, the Issuer must conform with the Update Reporting
requirements per Clause A.3.4.

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A.4.5.1. An Issuer must stop using the Certification Mark if any of the following applies:i. The Issuer no longer wishes to continue with the Certification of the debt
instrument and provides a written statement to that effect to the Climate Bonds
Standard Secretariat.
ii. The issuance of the debt instrument is cancelled or suspended.
iii. The debt instrument is issued more than 12 months after the Pre-Issuance
Certification is awarded in accordance with Clause A.4.1.2, other than in the context
of a Programmatic Certification as described in Clause A.4.4 and no extension has
been granted by the Climate Bonds Standard Secretariat.
iv. The Climate Bonds Standard Secretariat becomes aware that the Issuer and/or
the debt instrument no longer conform with the Climate Bonds Standard.
v. A Verification Engagement commissioned by the Issuer, or the Climate Bonds
Standard Secretariat finds that the Issuer and/or the debt instrument no longer
conforms with the Climate Bonds Standard.
vi. Ongoing certification is not met (see Clause A.4.1.4)
vii. Revocation of Certification occurs (see Clause A.4.7)

A.4.6. Maintaining Certification
A.4.6.1. To maintain the Certification status of the debt instrument, the Issuer must
prepare and make available Update Reports at least annually, for as long as the debt
instrument remains outstanding per Clause A.3.4. An authorised officer of the Issuer
must sign the Update Report.
A.4.6.2. The Issuer must supply the Climate Bonds Standard Secretariat with links to
Update Reports or share their location on a public website (such as EMMA).
A.4.6.3. The Issuer may engage an Approved Verifier to undertake further Verification
Engagements on a periodic basis, to confirm that the Issuer has maintained
conformance with the Post-Issuance requirements of the Climate Bonds Standard.
A.4.6.4. Where Nominated projects and assets are covered by Sector Criteria, which
require ongoing demonstration of eligibility, the Issuer must include in the Update
Reports confirmation that Nominated projects and assets continue to meet the relevant
Criteria, including any relevant metrics or thresholds.

A.4.7. Revocation of Certification
A.4.7.1. An Issuer using the Certification Mark must provide further information if
requested by the Climate Bonds Standard Secretariat.
A.4.7.2. In case of an alleged breach of conformance with the Climate Bonds Standard,
the Climate Bonds Standard Secretariat may request that a different Approved Verifierprepares a new Verification Report as a condition for maintaining Certification under the
Climate Bonds Standard:i. This Verification Report must be submitted to the Climate Bonds Standard
Secretariat for review within three months of the initial request.
ii. The Climate Bonds Standard Secretariat may request no more than one
Verification Report in any six-month period following Post-Issuance Certification.
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A.4.7.3. Where a Certified debt Instrument is no longer in conformance with the
Climate Bonds Standard, then the Issuer must disclose that fact to the Climate Bonds
Standard Secretariat within one month of becoming aware of the non-conformance:i. The Climate Bonds Standard Secretariat may suggest corrective actions
to restore conformanceii. If conformance is not restored to the satisfaction of the Climate Bonds Standard
Secretariat, the Certification of that debt instrument will be revoked.
A.4.7.4. Once Certification of a debt instrument has been revoked by the Climate Bonds
Standard Secretariat, the Issuer shall:i. Not use the Certification Mark in association with the debt instrument or imply
that the Certification is still in place, either directly by the Issuer or indirectly throughthird-party data providers.
ii. Take all necessary steps to remove that debt instrument from relevant lists orindices which require Certification; andiii. Inform the holders of the debt instrument, relevant exchanges, and othertransaction parties of the change in the Certification status.
A.4.7.5. An Issuer of a debt instrument which has had its Certification revoked by the
Climate Bonds Standard Secretariat may appeal the decision through the Climate
Bonds Standard Complaints and Appeals Policy.

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PART B. ASSET CERTIFICATION

B

B.1. Eligibility requirements
B.1.1. The legal owner of any project, asset or portfolio of assets thatsatisfies the Sector Criteria may apply to certify such assets. In an Asset Certification
process, the assessment involves only the eligibility of a project, asset, or portfolio of assets
under the Sector Criteria and is not related to the financing of these assets. The project,asset, or portfolio to be Certified must be labelled and described in sufficient detailto be clearly identifiable.

B.2. Process outline
B.2.1. Asset owners seeking Certification of their projects, assets or portfolio of assets shall:i. Engage an Approved Verifier to undertake the Verification Engagement to assess
conformance with the Sector Criteria of the Climate Bonds Standard. The Approved Verifier
engaged by the owner must issue a Verification Report expressing an opinion as to whether
the owner has conformed to the Climate Bonds Standard Asset Certification requirements.
ii. The Approved Verifier must confirm that the asset owner has the internal processes
to ensure that the specific asset/portfolio will remain eligible in the 12-month period
following the certification.
iii. Complete and submit the Climate Bonds Information Form to the Climate Bonds
Standard Secretariat. The asset owner must identify within the Climate Bonds
Information Form which information provided is confidential and which components
can be publicly disclosed on the Climate Bonds Initiative website once Certification
has been confirmed.

B.2.2. An asset owner may apply to the Climate Bonds Standard Secretariat to receive

Certification of the project/asset/portfolio of assets under the Climate Bonds Standard bysubmitting the following documents: (i) a completed Climate Bonds Information Form (ii)an unqualified Verification Report, and (iii) an executed Certification Agreement. These
documents must be submitted to the Climate Bonds Standard Secretariat via email.

B.2.3. If the Climate Bonds Standard Secretariat is satisfied that the proposed assets arein conformance with the asset Certification Requirements, then it shall provide a statement
to the asset owner confirming the Certification under the Climate Bonds Standard.

B.3. Static or Dynamic asset Certification
B.3.1. Static asset Certification refers to a project, asset or portfolio of assets, thecomposition of which does not change over the duration of the certification period (12months for a one-off asset Certification).

B.3.2. Dynamic asset certification refers to a pool of assets into which new assets may

be added over the duration of certification. In the case of Dynamic Asset Certification, theIssuer must adopt a process by which they can evaluate and select the individual assets
within the green project categories. This process is similar to that adopted by green bondIssuers for selecting eligible assets in a Use of Proceeds certification, as described in ClauseA.2.2. In a dynamic certification process, the Approved Verifier must assess the asset
owner’s asset selection controls and procedures.
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B.4. Validity of Certification Label/Mark

B

B.4.1. One-off asset Certification
This Certification attaches to specific eligible Projects, Assets or Portfolios of Assets. It will bevalid for a maximum of 12 months from when the Certification is awarded unless the asset
owner adopts a Programmatic Asset Certification process as described in Clause B.4.2.

B.4.2. Programmatic Asset Certification
The asset owner may apply for Programmatic Asset Certification by engaging theApproved Verifier annually to confirm the eligibility of the project, asset, or portfolioof assets. To maintain certification of the project, asset or portfolio of assets, the asset
owner must submit a Verification Report to the Climate Bonds Standard Secretariat
confirming alignment with the Sector Criteria applicable when the verification work was
conducted. If assets relating to new sectors are added to the Certified pool of assets,
the asset owner must ensure that the description of the expanded asset pool clearly
describes its composition.

B.5. Revoking Certification
B.5.1. An asset owner using the Certification Mark must provide further information if
requested by the Climate Bonds Standard Secretariat.

B.5.2. In cases of a suspected breach of conformance with the Climate Bonds Standard,

the Climate Bonds Standard Secretariat may request a new Verification Report be preparedby a different Approved Verifier as a condition for maintaining Certification under the
Climate Bonds Standard.

B.5.3. Where a Certified project, asset or portfolio of assets no longer conforms with the
Climate Bonds Standard, the asset owner must disclose that fact to the Climate Bonds
Standard Secretariat within one month of becoming aware of the non-conformance.
The Climate Bonds Standard Secretariat may suggest corrective actions to restore
conformance. If conformance is not restored to the satisfaction of the Climate Bonds
Standard Secretariat, the Certification of that asset will be revoked.

B.5.4. Once the Certification of an asset has been revoked by the Climate Bonds

Standard Secretariat, the Owner must not use the Certification Mark or imply that theCertification is still in place.

B.5.5. An asset owner which has had its Certification revoked by the Climate Bonds
Standard Secretariat may appeal against the decision through the Climate Bonds
Standard Complaints and Appeals Policy.

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PART C: ENTITY CERTIFICATION

C

C.1. Introduction
Currently, Entity Certification is limited to non-financial Entities orsegregated segments thereof, for which the Climate Bonds Initiative has Climate Bonds
Standard Sector Criteria for Entity Certification.
These entities, or segments thereof, may have emissions already at or near zero or
significantly above zero but with Transitions Plans aligned with 1.5C degree pathways.
Certification is valid for five years from the date of certification, subject to compliance withthe requirements laid out in this Part C.
Figure C1 summarises the steps to Entity Certification. Figure C2 illustrates thecertification requirements for the Compliant Activities of the entity, or segregated segment
thereof, being Certified. Figure C3 illustrates additional certification requirements relating
to the remainder of the legal entity not forming part of the Certified Entity (in the caseof certification of a segment of a legal entity) or to the wider Parent Group of which theCertified Entity is a part (if the Certified Entity is part of a Parent Group).
A Checklist for Certification providing further clarification on the requirements to comply
with the criteria for Entity Certification is given in the accompanying ‘Entity Certification
Checklist’ document. That Checklist must be adhered to in conjunction with therequirements in this Part C.

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Figure C1: Steps to Entity Certification*

C
Certifiable
EntityClauseC.2.3.
All confirmed
by Approved
Verifier

ClauseC.4.,C.5.
Parent Groupis compliant

ClauseC.2.3.

ClauseC.3.,C.5.

ClauseC.2.3.

ClauseC.2.2.
Eligibleboundary for
the Certified
Entity is set

ClauseC.2.1.

Economic
activitiesof theCertified
Entity are
disaggregatedApplicanthas control
over Certified
EntityEach of thoseeconomic
activities isassessed forcompliance

Compliantactivities
represent
90% of theCertified
EntityFig. C.3.

Compliant Parent Groups
meet the Climate Safeguards
and have adequate
disclosure and verification

Compliant Activities
have ambitious
Performance
Targets, supporting
Transition Plans andgovernance, andadequate disclosureand verification

Fig. C.2.

*These are the steps and requirements to obtain certification. The steps and requirements for maintaining certification are different.
See Clause C.2.4.

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Figure C2: Requirements for Compliant Activities of the Certified Entity
Transition Plan

Transparency

Performancetargets

Foundation*

Implementationplans*

Governance

Disclosure

Climateperformancetargets to assess
and monitor
progress to 1.5
degree alignment

Vision of future
activities, products,
services andtechnologies andstrategic narrativeon levers and risks
to get there

Trackable transition
roadmap of actionplans, milestones
and operating andfinancial metrics

Oversight,
monitoring andmanagement ofprogress

Public information
for transparency
and credibility

C.3.1.
ClimatePerformance

C.3.2.2.
Foundation

C.3.2.3.
Implementation

C.3.3.
Governance

C.5.
Disclosure

C.3.1.1.
Climatemitigation

C.3.2.2.1.
VisionC.3.2.3.1.
Action Plan
scope 1 & 2

C.3.3.1.
Board & senior
executive
responsibility

C.5.1.
Information
to disclose

C.3.1.2.
Adaptation& resilience

C.3.2.2.2.
Strategic
narrative

C.3.2.3.2.
Action Plan
scope 3C.3.2.2.3.
Environmental & social
goal alignment

C.3.2.3.3.
Finance Plan

C.3.2.3.4.
Internal policyalignment

C.3.3.2.
(Re)setting &monitoring
Targets &Plans
C.3.3.3.
Correctionof underperformance

C.3.2.3.5.
Sensitivity
analysis*Where required for that sector.

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CFigure C3: Requirements on the Parent Group
Transition Goals

C

Transparency

Climate Performance

Transition strategy

Disclosure

Commitments not toundertake excluded
activities and to achieve
net zero emissions

Outlines of a Transition
Plan to achieve that net
zero target

Information sharedpublicly for credibility

ClimatePerformance

Transition strategy

Disclosure

C.4.1.
Exclusions

C.4.3.
Transition Plan

C.5.1.
Information todisclose

C.4.2.
Net zero commitment

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C

C.2. Eligibility and Accounting Rules
C.2.1. Applicant control over the Certified Entity
The Applicant must either be the same legal entity as the Certified Entity or haveoperational control over the Certified Entity.

C.2.2. Boundary of the Certified Entity
The Certified Entity may be a group of legal entities within a Parent Group, a single legal
entity or a segregated segment thereof, at the Applicant’s discretion, subject to thefollowing conditions:i. Certification of a Parent Company must include subsidiaries and other controlled
companies within its boundary. The sole exception is where no Sector Criteria are
available to assess the activities of any subsidiary or controlled company, in which casethose subsidiaries or controlled companies must be excluded from the boundary of
the Certified Entity.
ii. A segregated segment thereof means a sub-division of a legal entity. This can be
set as the Certified Entity and Certified in its own right only if no Climate Bonds Sector
Criteria exist for the other sub-divisions of the legal entity.
iii. Where an economic activity of the Certified Entity is carried out across multiple
sub-divisions or subsidiaries or companies controlled by the same legal entity, theApplicant must include all such sub-divisions and subsidiaries within the boundaryof the Certified Entity.

C.2.3. Obtaining Entity Certification
The Applicant receives a Verification Report from an Approved Verifier that:i. The proportion of the Certified Entity’s economic activities that are counted ascomplying with the Climate Performance, Delivery Strategy, Governance and Disclosure
requirements in Clauses C.3.1, C.3.2, C.3.3 and C.5, respectively, exceeds 90% of theCertified Entity’s total economic activities; andii. The Parent Group meets the Climate Safeguard and Disclosure requirements inClauses C.4 and C.5, respectively.
And the Applicant supplies to the Climate Bonds Standard Board, through the Climate
Bonds Standard Secretariat, a copy of the Verification Report or shares its location on a
public website, for the purpose of publishing on the Climate Bonds Initiative website.
See Box C1 for the application process for obtaining Entity Certification.
A note on terminology: This 90% is defined as the ‘Certification Threshold’, and economic
activities which meet the Climate Performance, Delivery Strategy, Governance and Disclosure
requirements per Clauses C.3.1, C.3.2, C.3.3 and C.5 respectively and hence form part of this
90% are the ‘Compliant Activities’.
To assess compliance with this threshold, the economic activities of the Certified Entity
are disaggregated and weighted according to either their revenue share or shareof GHG emissions. See the Entity Certification Checklist document for the methodology
to determine compliance.

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Box C1: Application process for Entity Certification
Applicants seeking Entity Certification must apply by submitting the following
documents to the Climate Bonds Standard Board Secretariat:
i. A completed Climate Bonds Information Form;
ii. The Verification Report from an Approved Verifier that meets the requirements inClause C.2.3.; andiii. An executed Certification Agreement.
If the Climate Bonds Standard Board is satisfied that the Applicant is in conformancewith the Pre-Issuance requirements, then it will provide a statement confirming theCertification of the Certified Entity.
The Applicant must identify within the Climate Bonds Information Form which of theinformation provided are confidential and which can be publicly disclosed on the
Climate Bonds Initiative website once Certification is confirmed.

C.2.4 Maintaining Entity Certification
The Applicant receives an annual Verification Report from an Approved Verifier that:i.. In respect of the Certified Entity:
i. If at Certification the Certified Entity followed the revenue share basis forcompliance with the Certification Threshold and subsequently increased the revenueof any economic activity of the Certified Entity that did not previous contribute to
the Certified Entity meeting the Certification Threshold, then the Applicant has reassessed its compliance with the Certification Threshold and the Certified Entity stillmeets the Certification Threshold (per Clause C.2.3); andii. All interim Climate Mitigation Performance Targets (per Clause C.3.1.1) and allinterim milestones in the Delivery Strategy (per Clauses C.3.2.3.1, C.3.2.3.2 andC.3.2.3.3) falling due since the last Verification Engagement have been met. The only
exception to this may be where compensatory measures have been taken or areplanned to address underperformance and those measures collectively meet therequirements in Clause C.3.3; andiii. Any and all correction measures have been taken to address any anticipatedunderperformance in the delivery of the Delivery Strategy and future interim Climate
Mitigation Performance Targets meet the requirements in Clause C.3.3; andiv. All disclosure requirements have been met (per Clause C.5);
andii. The Parent Group remains in compliance (per Clauses C.4 and C.5);
andiii. The Applicant is not subject to revocation of certification due to any of the events
detailed in Box C2.
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iv. The Applicant supplies to the Climate Bonds Standard Board, through the Climate
Bonds Standard Secretariat, a copy of the annual Verification Report or shares its
location on a public website, for the purpose of publishing on the Climate Bonds
Initiative website.
See Box C3 for the process for maintaining Entity Certification:

Box C2: Events leading to the revocation of Entity Certification
Entity Certification will also be rescinded at any time where:
1. The Applicant becomes aware that the Certified Entity and/ or the Parent Groupno longer conforms with the Climate Bonds Standard and provides a written
statement to that effect to the Climate Bonds Standard Secretariat; or
2. A Verification Engagement commissioned by the Climate Bonds Standard Board,
finds that the Certified Entity and/ or the Parent Group no longer conforms with the
Climate Bonds Standard; or
3. The Applicant has breached any contractual obligation towards the
Climate Bonds Initiative.
In addition, if the Certified Entity has undertaken new economic activities in addition
to those previously taken into account when assessing compliance with theCertification Threshold (per Clause C.2.3.), the Applicant must re-apply for certification
within 12 months of the start of the new economic activity. This new application must
consider the new, expanded economic activities of the Certified Entity. If the new
application is not submitted or is not compliant with this PART C of the Standard,
the existing Entity Certification will be revoked.

Box C3: Maintaining Entity Certification
Applicants seeking to maintain Entity Certification must submit the following
documents to the Climate Bonds Standard Board Secretariat on an annual basis:
i. A completed Climate Bonds Information Form;
ii. The annual Verification Report from an Approved Verifier which meets therequirements per Clause C.2.4.).
If the Climate Bonds Standard Board is satisfied that the Applicant is in conformancewith the ongoing requirements, then it will provide a statement confirming the certified
status of the Certified Entity.

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C.3. Transition Plan for Compliant Activities

C

For each of the economic activities of the Certified Entity identified per Clause C.2.3., all of
the following requirements must be met for it to be deemed a ‘Complying Activity.’

C.3.1. Climate Performance
C.3.1.1. Climate Mitigation Performance Targets
C.3.1.1.1. Time horizon
The Climate Mitigation Performance Targets cover the time from the date ofcertification to the date the activity is intended to hit net zero emissions, or 2050,
whichever is sooner.
C.3.1.1.2. Interim Climate Mitigation Performance Targets
The Climate Mitigation Performance Targets include interim targets on a three-yearlybasis for the nine years following the date of certification and a five-yearly basis
thereafter over the full-time horizon described in Clause C.3.1.1.1.
C.3.1.1.3. Alignment with decarbonisation pathwaysof the Climate Bonds Standard
The interim Climate Mitigation Performance Targets (per Clause C.3.1.1.2) arebenchmarked against the climate mitigation criteria in the Climate Bonds Standard
Sector Criteria (Sector Criteria) and align with those Sector Criteria by 31 December
2030 at the latest.
N.B. Different levels of Entity Certification are awarded depending on the date the Climate
Mitigation Performance Targets align with the Sector Criteria – see Box C4.

Box C4: Two levels of Entity Certification
Two levels of Entity Certification are available, depending on when the Climate
Mitigation Performance Targets align with the Sector Criteria.
1. Level 1 – “Aligned”: The Climate Mitigation Performance Targets align with
the Sector Criteria at the time of Certification and thereafter until the date the
Climate Mitigation Performance Targets represent net zero emissions or 2050,
whichever is sooner.
2. Level 2 – “Transition”: The Climate Mitigation Performance Targets do not alignwith the Sector Criteria at the time of Certification but align by 31st December
2030 and thereafter until the date the Climate Mitigation Performance Targets
represent net zero emissions or 2050, whichever is sooner.
In addition, for both levels, the Delivery Strategy and governance for achieving those
Climate Mitigation Performance Targets meets the requirements described in Clauses
C.3.2 and C.3.3 respectively, the Parent Group complies with the requirements
described in Clause C.4 and the disclosure requirements of Clause C.5 are met.
C.3.1.1.4. Board approval
The Board of the Certified Entity has approved the Climate Mitigation Performance
Targets no earlier than one year prior to the application for Certification.

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C.3.1.2. Climate Adaptation & Resilience Performance
The economic activity complies with any Climate Adaptation & Resilience Criteria
specified in the relevant Climate Bonds Standard Sector Criteria.

C.3.2. Delivery Strategy
C.3.2.1. Board approval of the Delivery Strategy
If a Delivery Strategy is required for the economic activity*, that Delivery Strategy:• Includes all the elements listed in Clauses C.3.2.2. – C.3.2.3.; and• Has been approved by the Board of the Certified Entity no more than one year prior to
the application for Certification.
*See supplementary guidance for the list of activities that do/ do not requirea Delivery Strategy.
C.3.2.2. Foundations
The Delivery Strategy includes the following foundational elements.
C.3.2.2.1. Vision
A Vision outlining the strategic objectives and priorities of the transition, outlining
what the Certified Entity will look like in terms of its future economic activities,
physical assets and business model that aligns with the long-term Climate Mitigation
Performance Targets of Clause C.3.1.1.
C.3.2.2.2. Strategic Narrative
A Strategic Narrative describing how each of the Compliant Activities of the Certified
Entity will evolve from their current position to the Vision of Clause C.3.2.2.1., taking
into account business context.
C.3.2.2.3. Broader social and environmental alignment
A position statement aligning the Vision and Strategic Narrative of Clauses C.3.2.2.1
and C.3.2.2.2. with the Certified Entity’s broader environmental and social objectives,
strategies and/ or policies, in particular demonstrating that effects on biodiversity
sensitive areas, emissions to water and hazardous waste have been taken into account.
In addition, the Certified Entity is not subject to a complaint to a National Contact Point of
the OECD regarding Responsible Business Conduct of Multinational Enterprises.
C.3.2.3. Implementation plans
Implementation plans include the following.
C.3.2.3.1. Action Plan for scope 1 & 2 emissions
A time-bound plan of the trackable actions the Certified Entity will take or is taking
to implement its decarbonisation strategy as described in the Vision and Strategic
Narrative and thereby deliver its Climate Mitigation Performance Targets regarding
scope 1 & 2 emissions.
This includes interim milestones and metrics annually for the five-year period ofcertification, three-yearly for the subsequent nine years and a five-yearly thereafter.

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C.3.2.3.2. Action Plan for Scope 3 Emissions
A time-bound plan of the trackable actions the Certified Entity will take or is taking
to implement its decarbonisation strategy as described in the Vision and Strategic
Narrative and thereby deliver its Climate Mitigation Performance Targets regarding
scope 3 emissions.
This includes interim milestones and metrics annually for the five-year period ofcertification, three-yearly for the subsequent nine years and a five-yearly thereafter.
N.B. This is only required if the relevant Climate Bonds Standard Sector Criteria
address scope 3 emissions.
C.3.2.3.3. Finance Plan
A Finance Plan detailing the financial implications of the Strategic Narrative and Action
Plans, and the trackable actions being taken/ to be taken to deliver this Finance Plan.
This includes interim milestones and metrics annually for the five-year period ofcertification, three-yearly for the subsequent nine years and a five-yearly thereafter.
C.3.2.3.4. Internal policy alignment
Information on the key internal policies and conditions developed or to be
developed to enable the delivery of the Climate Mitigation Performance Targets,
Strategic Narrative, Action Plans and Finance Plan, explaining how each of thesepolicies supports specific elements and milestones in the Strategic Narrative, Action
Plans and Finance Plan.
C.3.2.3.5. Sensitivity analysis
Sensitivity analysis identifying the key sensitivities and risks to the Vision, Strategic
Narrative, Action Plans and Finance Plan that have the potential to decisively impact
the delivery of the Climate Mitigation Performance Targets.

C.3.3. Governance
The following accountability mechanisms are in place to govern the delivery of the Climate
Mitigation Performance Targets and any associated Delivery Strategy.
C.3.3.1. Board and senior executive responsibility
C.3.3.1.1. Board mandate
The Board (or equivalent governance body) has a clear mandate to:• Oversee the design of the Climate Mitigation Performance Targets and Delivery
Strategy;• Approve the Climate Mitigation Performance Targets and Delivery Strategy; and• Oversee the execution and monitor progress with the Delivery Strategy; and• Approve and monitor any corrective actions required where interim Climate
Mitigation Performance Targets and Delivery Strategy milestones are not being met.
C.3.3.1.2. Senior management responsibility
Senior management has responsibility for execution of the Delivery Strategy, and the
responsible parties have authority and access to resources to ensure execution.

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C.3.3.2. (Re)setting and monitoring the Climate Mitigation Performance Targets
and Delivery Strategy
C.3.3.2.1. (Re) setting Climate Mitigation Performance Targets
and the Delivery Strategy
Tools and mechanisms are in place for the (re) setting of robust Climate Mitigation
Performance Targets and the Delivery Strategy, including a full review and, if
necessary, update of the Climate Mitigation Performance Targets and the Delivery
Strategy at least every five years.
C.3.3.2.2. Tracking and monitoring delivery
Tools and mechanisms are in place for tracking and monitoring of delivery of interim
Climate Mitigation Performance Targets and the milestones and metrics identified in
the Action Plans and Finance Plan.
C.3.3.3. Correction of underperformance
In the event that interim Climate Mitigation Performance Targets and milestones andmetrics due during the period of Certification have not been met, corrective action
must be taken to reverse that under-performance so no interim Climate Mitigation
Performance Target or milestone or metric is unmet for a period longer than 12 months.

C.4. Commitments of the Parent GroupC.4.1. Exclusions
C.4.1.1. Expansion of fossil fuel activities
If any legal entity within the Parent Group is in the business of exploration or extraction orfossil fuels, or is a utility company generating or supplying power or heat generated fromfossil fuels, the Parent Company has, within the last year, publicly (re)committed to no
expansion of any of the following activities across the Parent Group after 1 January 2023:
i. The exploration and extraction of proven conventional and unconventional
fossil fuel reserves;
ii. The exploration of new conventional and unconventional fossil fuel resources;iii. Natural gas production;
iv. Refining crude oil to produce derivative products;
v. The supply and/or use of fossil fuels for power generation and heat.
C.4.1.2. Conversion of high-carbon-stock land
The Parent Company has, within the last year, publicly (re)committed that as of 1
January 2020, no entity within the Parent Group has or will convert, fragment, or
unsustainably intensify operations on high-carbon stock land leading to the loss of its
status as high-carbon stock land.

C.4.2. Net zero commitment
The Parent Company has approved and made public net zero emissions commitment
covering all material scope 1, 2 and 3 emissions of the entire Parent Group or already has
net zero emissions as determined in line with the GHG Protocol and based on emission
data that is independently verified/audited and not more than two years old.

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The Parent Company has approved and made public corresponding Transition Plans to
support the public net zero targets for the Parent Group (per Clause C.4.2).

C.5. Disclosure
C.5.1. Information to disclose
The Applicant publishes and keeps accessible on their website the information
presented in Table C1.

C.5.2. Format of disclosure
Disclosures have been and will be made according to the customary practices regarding
corporate disclosures, such as annual reporting, dedicated sustainability reporting,statutory filings, and investor presentations, at the discretion of the Applicant.

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Table C1: Disclosure requirements for Entity Certification
Relevantclause

Pre-Certification disclosure

Annual disclosure
thereafter

C.2.1 Applicant
control of theCertified Entity

The name of the Applicant.

Any changes in therelationship between
the Applicant and theCertified Entity.

C.2.2. Boundaryof the Certified
EntityAll activities of the Applicant company, noting which areincluded within the boundary of the Certified Entity andwhich are not, and the rationale for that.

The entity that is the Certified Entity.
The relationship between the Applicant and the Certified
Entity (if different).

All legal entities of the Applicant, noting which are included
within the boundary of the Certified Entity and which are not.
Any activities of the Applicant which are not included in theboundary of the Certified Entity and the rationale for that.
C.2.3. Obtaining
EntityCertification

Which of the economic activities of the Certified Entity
have been counted towards the 90% Certification
Threshold and which have not.

Any changes to activities
and/ or legal entities of the
Applicant, and how thishas or has not changed
the boundary/ activities
included within theboundary of the Certified
Entity.
n/a

The method used to disaggregate and weight different
economic activities within the Certified Entity to determine
compliance with the Certification Threshold (revenue oremissions).
Which legal entities form part of the Parent Group, and theeconomic activities they practice.
The assurance or external review provider.
The level of assurance obtained (limited assurance orreasonable assurance) where appropriate
The professional standard(s) against which the Verification
Engagement was performed.
The Approved Verifier’s pre-Certification Verification Report.
C.2.4
Maintaining
EntityCertification

n/a

The assurance/external
review provider.
The level of assurance
obtained where relevant.
The professional
standard(s) against which
the Verification Engagement
was performed.
The Approved Verifier’sannual Verification Report.
Any revocation of
Certification.

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Relevant clause

Pre-Certification disclosure

Annual disclosure
thereafter

C.3.1.1. Climate
Mitigation
Performance
Targets

The interim Climate Mitigation Performance Targets overthe full-time horizon i.e. on a three-yearly basis for thenine years following certification, and a five-yearly basis
thereafter (per Clauses C.3.1.1.1 and C.3.1.1.2)

Any changes in therelationship between
the Applicant and theCertified Entity.

The Climate Bonds Standard Sector Criteria that the
Climate Mitigation Performance Targets have beenassessed against (per Clause C.3.1.1.3)
The date the Climate Mitigation Performance Targets wereapproved by the Board of the Certified Entity
Whether the Climate Mitigation Performance Targets alignwith the Sector Specific Criteria at the time of Certification. If
not, the year by which they are expected to align.
Related to that, whether Certification is Level 1 (“Aligned”) or
Level 2 (“Transition”) (per Clause C.3.1.1.3)

C.3.2.1. Approvalof the Delivery
Strategy

The activities of the Certified Entity covered by the
Delivery Strategy.
In cases where some or all of the activities of the Certified
Entity are not required to have a Delivery Strategy, whether
and, if so, when a Delivery Strategy will be adopted.

Whether alignment
with the Climate Bonds
Standard Sector Criteria
has been achieved (perClause C.3.1.1.3)
Any changes to the
expected date the Climate
Mitigation Performance
Targets are expected toalign with the Climate
Bonds Standard Sector
Criteria (earlier or later)
and any related change tothe level of Certification
awarded (per Clause
C.3.1.1.3).
The date of Board
approval of any changes
to the Delivery Strategy
reset since the previous
Verification Engagement.

The date of Board approval of the Delivery Strategy.
C.3.2.2.1.
Foundationsof the Delivery
Strategy - Vision

A description of the Vision addressing the elements
described in Clause 3.2.2.1., and how this aligns with thedelivery of the Climate Mitigation Performance Targets.

Any amendments to the
Vision since the previous
Verification Engagement.

The extent, role and source of any carbon offsets, carbon
removals and avoided emissions the Certified Entity
anticipates employing to address any residual emissions
over and above those required to meet the Climate Bonds
Standard Sector Criteria.

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44CRelevant clause

Pre-Certification disclosure

Annual disclosure
thereafter

C.3.2.2.2.
Foundationsof the Delivery
Strategy –Strategic
Narrative

A description of the Strategic Narrative addressing:

Any significant amendments
to the Strategic Narrative
since the previous
Verification Engagement.

• Current GHG emissions, in absolute emissions terms andany other metrics such as emissions intensity detailed
in the Climate Bonds Standard Sector Criteria. Including
information on the current sources and volume of
GHG emissions and how and by whom this has been
calculated and verified.
• Key decarbonisation levers, their anticipated timing andemissions reduction impact• Assumed market trends, business growth, pricing anddemand underpinning the transition strategy as well as
regulatory and government policy assumptions.
• Significant challenges in delivering the strategy.
• Significant areas of uncertainty in estimation,
assumptions, or outcomes.
• How the Certified Entity embedded the strategy in its
wider business model, highlighting key implications for
products and services, resourcing and operational andcapital expenditure, acquisitions or divestments.

C.3.2.2.3.
Foundationsof the Delivery
Strategy–Broaderenvironmental
and socialalignment

A summary assessment of the negative environmental
or social externalities related to delivering the Vision andStrategic Narrative.
A summary description of the steps that the Certified Entity
is taking, or planning to take, to mitigate those impacts.
A summary description of how, if at all, the decarbonisationtransition contributes to the Just Transition in the region inwhich the activities are carried out.

Climate Bonds Standard Version 4.1

An update on theassessment of thenegative environmental
or social externalities
related to main actions
supporting the Delivery
Strategy, and the steps
that the Certified Entity is
taking, or planning to take,to mitigate those impacts.

45

CRelevant clause

Pre-Certification disclosure

Annual disclosure thereafter

C.3.2.3.1.
Implementation
Plans – Action
Plan for scope 1& 2 emissions

The roadmap of the short-, medium- and longterm actions the Certified Entity will take todeliver the decarbonisation levers relating toscope 1 & 2 emissions and hence the Climate
Mitigation Performance Targets.

Progress and track record against
the milestones and business oroperational metrics identified in the
Action Plan for Scope 1 & 2 Emissions.

The milestones and business and operations
metrics that will be used to track performance.
An overview of which actions, milestones
and metrics are subject to external review
including the nature of the review.

Where any milestones or businessor operational targets falling due
since the previous Verification
Engagement have been not been met,
the corrective actions being taken toaddress this within 12 months (in linewith Clause C.3.3.)
Any significant amendments to the Action
Plan for Scope 1 & 2 Emissions since theprevious Verification Engagement.

C.3.2.3.2.
Implementation
Plans – Action
Plan for scope 3
Emissions

A high-level description of the Action Plan for
Scope 3 Emissions describing the objectives,
scope of coverage and actions that will be taken
to reduce value chain emissions necessary
for delivery any related decarbonisation leveridentified in the strategic narrative.
The interim milestones and metrics that will
enable assessment of progress in the delivery of
the Action Plan for Scope 3 Emissions.

Progress and track record against
the interim milestones and metrics
identified in the Action Plan for
Scope 3 Emissions.
Where any milestones or metrics
falling due since the previous
Verification Engagement have been
not been met, the corrective actions
being taken to address this within 12
months (in line with Clause C.3.3.)
Any significant amendments to the
Action Plan for Scope 3 Emissions since
the previous Verification Engagement.

C.3.2.3.3.
Implementation
Plans – FinancePlan

A description of the financial implications of
the planned changes to the entity’s businessstrategy, resource allocation and products
and services arising from its Transition
Plan, including relevant financial plans andinvestment where possible.
An explanation of how the above impacts
have been integrated into general purpose
financial reporting.
The financial metrics and targets that will be
used to assess progress in the delivery of the
Finance Plan and the current value of thosemetrics, and the methodologies by whichthose metrics will be calculated.

Progress and track record against
the interim financial milestones
and metrics.
Where any milestones or metrics
falling due since the previous
Verification Engagement have been
not been met, the corrective actions
being taken to address this within 12
months (in line with Clause C.3.3.)
Any significant amendments to the
Finance Plan since the previous
Verification Engagement.

Metrics that have significant estimation
uncertainty, noting the sources and nature of
the estimation uncertainties and the factors
affecting the uncertainties.
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Pre-Certification disclosure

Annual disclosure thereafter

C.3.2.3.4.
Implementationplans - Internal
policy alignment

The key internal policies that need to
be developed to deliver the Climate
Mitigation Performance Targets and the
Delivery Strategy, and a schedule for theirdevelopment and implementation.

Progress against the schedule forthe developing and implementing theidentified internal policies key
to the delivery of the Climate
Mitigation Performance Targets andthe Delivery Strategy.

C.3.2.3.5.
Implementation
Plans –
Sensitivity
analysis

Key sensitivities and risks around the Delivery
Strategy and achievement of the Climate
Mitigation Performance Targets.

Any significant changes to the resultsof the Sensitivity Analysis since theprevious Verification Engagement.

The threshold or methodology for determining
which sensitivities and risks have been
identified as key, taking into account themateriality of cumulative or aggregateduncertainties or challenges.

How these changes have beenaddressed in the Vision, Strategic
Narrative, Action Plans and/ or
Finance Plan as appropriate.

Quantification of the potential impact in termsof the likelihood, timing and cost of delivery of
the Climate Mitigation Performance Targets.
How these impacts are reflected in the Strategic
Narrative, Action Plans and Finance Plan.
C.3.3.1.
Governance- Board andsenior executive
responsibility

The named individual, committee or Board
responsible for the Transition Plan.
The management structure in place for
executing the Transition Plan.
How frequently the Board reviews theTransition Plan, and how frequently the Board
will monitor and receive reports on progressagainst the Climate Mitigation Performance
Targets and milestones.
How the Certified Entity ensures adequate
climate expertise (e.g., management expertise,provided resources, trainings, skill acquisition).

Any changes to the named individual,
committee, or Board responsible for
the Transition Plan.
Any changes or additions to climate
and/ or transition-related KPIs
tied to Board, CEO or other senior
compensation plans.
Performance against the disclosed
responsibility-related metrics
and targets.

Any KPIs tied to Board, CEO or other senior
executive compensation plans that are alignedwith the organization’s climate goals, as
described in the Transition Plan.
Any responsibility related targets and progressagainst those targets.

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Pre-Certification disclosure

Annual disclosure thereafter

C.3.3.2.
Governance (Re)setting andmonitoring
the Climate
Mitigation
Performance
Targets andDelivery Strategy

Information on internal controls that are in place toscrutinise the Transition Plan, and progress against
the plan, by relevant internal assurance functions
such as internal audit.

Any changes to the controls,
tools and mechanisms
disclosed in the previous
Verification Engagement.

Stakeholder communication and feedback
mechanisms, including whether the Transition Planis scrutinised by shareholders (such as through anadvisory vote at the entity’s Annual General Meeting,or resolution subject to shareholder approval).

If the scheduled review fell due
since the previous Verification
Engagement, all reset Climate
Mitigation Performance
Targets and Delivery Strategy
disclosure requirements
detailed under Clauses C.3.1
and C.3.2.

Information on the process and internal controls formonitoring and tracking performance regarding theinterim Climate Mitigation Performance Targets andmilestones and targets identified in the Action Plans
and Finance Plan. This includes information on any
tracking and estimation tools, including but not limited
to GHG performance tools, and any equivalents for
Climate Mitigation Performance Targets that are notexpressed in terms of GHG emissions.

Any changes to the date of thenext scheduled review.

Information on the process for regularly reviewing
the Transition Plan to ensure material updates areincorporated and challenges are addressed.
Commitment by the Applicant to review theTransition Plan at least every 5 years.
Date of the last and the next scheduled review.
C.3.3.3.
Governance- Correctionof underperformancen/a

Any corrective actions
planned to address any
underperformance, with an
explanation of how they willaddress that underperformance.

C.4.1. Parent
Group
Commitments –Exclusions

Commitment by the Parent Company on behalf of the
Parent Group to zero future expansion of any of theactivities detailed in Clause C.4.1.1.

Statement from the Parent
Company on behalf of the Parent
Group that no entity within the
Parent Group has expanded
any of the activities detailed in
Clause C.4.1.1 since the previous
Verification Engagement.

Statement by the Parent Company on behalf of the
Parent Group that no entity within the Parent Grouphas expanded any of the activities detailed in Clause
C.4.1.1 since 1 January 2023.
Commitment by the Parent Company on behalf of the
Parent Group that no entity within the Parent Groupwill or is planning to convert high carbon stock landas detailed in Clause C.4.1.2.
Statement by the Parent Company on behalf of the
Parent Group that no entity within the Parent Grouphas converted high carbon stock land (as detailed in
Clause C.4.1.2) since 1 January 2020.

Climate Bonds Standard Version 4.1

Statement by the Parent
Company on behalf of the Parent
Group that no entity within the
Parent Group has converted highcarbon stock land (as detailed in
Clause C.4.1.2) since the previous
Verification Engagement.

48

CRelevant clause

Pre-Certification disclosure

Annual disclosure thereafter

C.4.2. Parent
Group
Commitments Net zeroCommitment by the Parent Company to net zero
emissions and the expected date for net zero –covering the entire Parent Group (per Clause C.4.2)

Any changes to the net zerocommitment for the Parent
Group (per Clause C.4.2)

C.4.3. Parent
Group Commitments – Transition Plan

A description of the Transition Plan outlining how
the Parent Group will achieve net zero emissions (perClause C.4.3)

Any updates to the Transition
Plan for the Parent Group (perClause C.4.3)

C.6.1. Extending
EntityCertification- to financial
instruments
linked to
the Climate
Mitigation
Performance
Targets andTransition Plans

Details of any financial instrument to which Entity
Certification was linked at the time of Entity
Certification.

Details of any financial
instrument to which Entity
Certification has been extended
since the last Verification
Engagement.

C.6.2. Extending
EntityCertification - togeneral purpose
debt

Details of any financial instrument to which Entity
Certification was linked at the time of Entity
Certification.

Details of any financial
instrument to which Entity
Certification has been
extended since the last
Verification Engagement.

C.6.3. ExtendedentityCertification- revocationof linked
certificationn/aDetails of revocation of
any instrument to which
Entity Certification waspreviously extended.

If any part of the Parent Grouppractices any of the activities
described under Clause C.4.1.1.,
the expected timing to fullycease those activities.

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C

C

C.6. Extending entity certification to linked
financial instruments
C.6.1. Extending entity certification to financial instruments
linked to the Climate Mitigation Performance Targets
and Delivery Strategy
The Applicant may use Entity Certification as a stepping-stone to certification of financial
instruments linked to the Climate Mitigation Performance Targets and Delivery Strategyof the Certified Entity as assessed per Clause C.3, such as a Sustainability-Linked Bond orLoan, or a compatible Use-of-Proceeds Bond.
Certification is not automatically extended to these financial instruments. It requires an
Approved Verifier to verify the link between the Entity certification and SustainabilityLinked Debt (SLD)/ Use-of-Proceeds Certification under Part D/ Part A of the Standard andmeet any other SLD/ Use-of-Proceeds criteria as described in this document.

C.6.2. Extending entity certification to general purpose debt
A Certified Entity may also apply for certification of any general-purpose debt issued
by the same Certified Entity, such as commercial paper, revolving credit facilities or a
general-purpose bond.
A company wishing to certify its general-purpose debt must complete the Climate Bonds
Information Form and submit it to the Climate Bonds Standard Secretariat. The Climate
Bonds Secretariat will award the Certification without needing a Verification Report by
an Approved Verifier.

C.6.3. Revocation of linked certification
Should certification of the Certified Entity lapse or be revoked for any reason
in accordance with Box C2, certification of any linked instrument still outstanding
will also be publicly revoked.

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PART D: SUSTAINABILITYLINKED DEBT

DD.1. Introduction
The requirements for Sustainability-Linked Debt (SLD) Certification closely mirror
those for Entity Certification. Additional disclosure elements have, however, been
added into the requirements for SLD Certification concerning the structural characteristics
of SLD instruments.
Currently, SLD Certification is only available to SLD instruments issued by legal entities, orsegments thereof, providing non-financial goods and services for which the Climate Bonds
Initiative has Climate Bonds Standard Sector Criteria for SLD Certification.
Certified SLD instruments may be linked to economic activities that either haveemissions already at or near zero or significantly above zero but with Transition Plansaligned with 1.5C degree pathways. Certification focused only on the climate mitigation
aspects of any performance targets linked to the SLD instrument. Where the performancetargets linked to Certified SLD instruments relate to social or other environmental goals,
Certification confers no assurance over those performance targets or any associated(elements of a) transition plan.
SLD Certification is valid for the full term of the SLD instrument, subject tocompliance with the requirements laid out in PART D.
Figure D1 summarises the steps to SLD Certification. Figure D2 illustrates the certification
requirements for the economic activities represented by the Climate Mitigation
Performance Targets linked to the SLD instrument. Figure D3 illustrates additional
certification requirements relating to wider activities of the Issuer (if any) and the Parent
Group to which it belongs (if any).
A Checklist for Certification providing further clarification on the requirements to comply
with the criteria for SLD Certification is given in the accompanying ‘SLD Certification
Checklist’ document. That Checklist must be adhered to in conjunction with therequirements in this Part D.

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Figure D1: Steps to SLD Certification*

D
Certified
SLD

ClauseD.2.3.
All confirmed
by Approved
Verifier

ClauseD.4.,D.5.
Parent Groupis compliant

ClauseD.2.3.

ClauseD.3.,D.5.

ClauseD.2.3.

ClauseD.2.2.

Economic
activities are
disaggregatedEligibleboundaryfor economic
activities
is setClauseD.2.1.
Applicant hascontrol overeconomic
activities

Compliantactivities
represent 90%
of economic
activities

Each of thoseeconomic
activities isassessed forcompliance

Fig. D.3.

Compliant Parent Groups
meet the Climate Safeguards
and have adequate
disclosure and verification

Compliant Activities
have ambitious
Performance
Targets, supporting
Transition Plans andgovernance, andadequate disclosureand verification

Fig. D.2.

*These are the steps and requirements to obtain certification. The steps and requirements for maintaining certification are different.
See Clause D.2.4.

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Figure D2: Requirements for Compliant Activities

D

Transition Plan

Transparency

Performancetargets

Foundation*

Implementationplans*

Governance

Disclosure

Climateperformancetargets to assess
and monitor
progress to 1.5
degree alignment

Vision of future
activities, products,
services andtechnologies andstrategic narrativeon levers and risks
to get there

Trackable transition
roadmap of actionplans, milestones
and operating andfinancial metrics

Oversight,
monitoring andmanagement ofprogress

Public information
for transparency
and credibility

D.3.1.
ClimatePerformance

D.3.2.2.
Foundation

D.3.2.3.
Implementation

D.3.3.
Governance

D.5.
Disclosure

D.3.1.1.
Climatemitigation

D.3.2.2.1.
VisionD.3.2.3.1.
Action Plan
scope 1 & 2

D.3.3.1.
Board & senior
executive
responsibility

D.5.1.
Information
to disclose

D.3.1.2.
Adaptation& resilience

D.3.2.2.2.
Strategic
narrative

D.3.2.3.2.
Action Plan
scope 3D.3.2.2.3.
Environmental & social
goal alignment

D.3.2.3.3.
Finance Plan

D.3.2.3.4.
Internal policyalignment

D.3.3.2.
(Re)setting &monitoring
Targets &Plans
D.3.3.3.
Correctionof underperformance

D.3.2.3.5.
Sensitivity
analysis*Where required for that sector.

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Figure D3: Requirements on the Parent Group
Transition Goals

D

Transparency

Climate Performance

Transition strategy

Disclosure

Commitments not toundertake excluded
activities and to achieve
net zero emissions

Outlines of a Transition
Plan to achieve that net
zero target

Information sharedpublicly for credibility

ClimatePerformance

Transition strategy

Disclosure

D.4.1.
Exclusions

D.4.3.
Transition Plan

D.5.1.
Information todisclose

D.4.2.
Net zero commitment

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D

D.2. Eligibility and accounting rules
D.2.1. Issuer control
The Issuer has operational control over the economic activities represented by the Climate
Mitigation Performance Targets linked to the SLD instrument.

D.2.2. Boundary of economic activities
The Issuer may set the boundary of the economic activities represented by the Climate
Mitigation Performance Targets linked to the SLD instrument at their discretion, subject tothe following condition:
Where the same economic activity is carried out across multiple sub-divisions or
subsidiaries or companies controlled by the same legal entity, the Climate Mitigation
Performance Targets must address all instances of that activity across all sub-divisions
and companies controlled by the Issuer.

D.2.3. Obtaining SLD Certification
The Issuer receives a Verification Report from an Approved Verifier that:i. At least 90% of economic activity(ies) represented by the Climate Mitigation Performance
Targets linked to the SLD instrument comply with the Climate Performance, Delivery Strategy,
Governance and Disclosure requirements in Clauses D.3.1, D.3.2, D.3.3 and D.5, respectively; andii. The remaining % of the economic activity(ies) represented by the Climate
Mitigation Performance Targets linked to the SLD instrument comply with the Climate
Performance, Delivery Strategy, Governance and Disclosure requirements in Clauses
D.3.1.1.1, D.3.1.2.2, D.3.1.2, D.3.2, D.3.3 and D.5, respectively; andiii. The Parent Group complies with the Climate Safeguard and Disclosure requirements
in Clauses D.4 and D.5, respectively; andiv. The SLD instrument will not mature or become callable before the date of the firstinterim Performance Target to which the instrument is linked.
And
The Issuer supplies the Climate Bonds Standard Board, through the Climate Bonds
Standard Secretariat, with a copy of the Verification Report or shares its location on a public
website, for the purpose of publishing on the Climate Bonds Initiative website.
And
If the SLD instrument has Use-of-Proceeds elements (i.e., it is a hybrid), it meets therequirements for Use-of-Proceeds bonds described in PART A of this document.
See Box D1 for the application process for obtaining SLD Certification.
A note on terminology: This 90% is defined as the ‘Certification Threshold’, and economic
activities which meet the Climate Mitigation Performance Targets, Delivery Strategy,
Governance and Disclosure requirements per Clauses D.3.1, D.3.2, D.3.3 and D.5 respectively
and hence form part of this 90% are the ‘Compliant Activities’.
To assess compliance with this threshold the economic activities represented by the Climate
Mitigation Performance Targets linked to the SLD instrument are disaggregated andweighted according to either their revenue share or share of GHG emissions. See the‘SLD Certification Checklist’ document for the methodology to determine compliance.
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D

Box D1: The application process for SLD Certification
Single SLD Certification
Issuers seeking SLD Certification shall apply by submitting the following documents to
the Climate Bonds Standard Board Secretariat:
1. A completed (as appropriate) Climate Bonds Information Form; and2. The Verification Report satisfying the requirements in Clause D.2.3.; and3. An executed Certification Agreement.
If the Climate Bonds Standard Board is satisfied that the Issuer is in conformancewith the Pre-Issuance requirements, then it will provide a statement confirming theCertification of the SLD.
The Issuer will identify within the Climate Bonds Information Form which information
provided is confidential and which can be publicly disclosed on the Climate Bonds
Initiative website once Certification has been confirmed.
Programmatic SLD Certification
Programmatic Certification allows an Issuer who meets the requirements of Clauses
D.2, D.3, D.4 and D.5 above to certify a number of SLD instruments which sharecommon Transition Plans.
For the first SLD instrument under the Program, the Issuer follows the standard process
for Climate Bond Certification as per ‘Single SLD Certification’. For subsequent SLD
instruments under the Program, the Issuer must apply to the Climate Bonds Standard
Board to receive Certification of each subsequent instrument’s conformance with the
Climate Bonds Standard, as follows:i. Prior to issuance, the Issuer must supply the Climate Bonds Standard Secretariat
with a completed Climate Bonds Information Form for the specific SLD instrument
to be considered for Certification. The Climate Bonds Standard Secretariat willpromptly provide the Issuer with formal confirmation of Certification of the specific
SLD instrument.
ii. Following every debt instrument issuance, the Issuer must supply the Climate
Bonds Standard Secretariat with an updated Climate Bonds Information Form.
iii. The annual Verification Reports described in Clause D.2.4 must cover all the SLD
instruments issued under the programme.

D.2.4. Maintaining SLD certification
The Issuer receive s an annual Verification Report from an Approved Verifier that:i. In respect of the activity(ies) represented by the Climate Mitigation Performance
Targets linked to the SL D instrument:
a. If, since the last Verification Engagement , t he revenue share of any existing part of
the Issuer’s acti vities represented by the Climate Mitigation Performance Targets that
did not previously contribute to meeting the Certification Threshold increases, theIssuer has re assessed compliance with the Certification Threshold and the Certified
SLD instrument st ill meets the Certification Threshold ( per Clause D. 2.1).

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b. All interim Climate Mitigation Performance Targets (per Clause D.3.1.1.) and allinterim milestones in the Delivery Strategy (per Clauses D.3.2.) falling due since thelast Verification Engagement ha ve been met. The only exception to this may be wherecompensatory measures have been taken or are planned to address underperformanceand those measures collectively meet the requirements in Clause D.3.3.;c. Any and all correction measures have been taken to address any anticipatedunderperformance in the delivery of the Delivery Strategy and future interim Climate
Mitigation Performance Targets (per Clause D.3.3.); andd. All disclosure requirements have been m et (per Clause D.5.);
and
The Parent Group remains in compliance (per Clauses D.4. and D.5.);
andThe Issuer is not subject to revocation of Certification due to any of the events detailed in Box D2.
andThe Issuer supplies the Climate Bonds Standard Board, through the Climate Bonds
Standard Secretariat, with a copy of the annual Verification Report or shares its location ona public website, for the purpose of publishing on the Climate Bonds Initiative website.
See Box D3 for the process for maintaining SLD Certification

Box D2: Events leading to the revocation of SLD Certification
SLD Certification will be rescinded at any time where:
1. The Issuer becomes aware that the Certified SLD instrument and/or the Parent Groupno longer conforms with the Climate Bonds Standard and provides a written statement
to that effect to the Climate Bonds Standard Secretariat; or
2. A Verification Engagement commissioned by the Climate Bonds Standard Board
finds that the Certified SLD instrument and/or the Parent Group no longer conforms
with the Climate Bonds Standard; or
3. The Climate Mitigation Performance Targets to which the SLD instrument is linked
are reset at a level lower than those in place at the time of Certification; or
4. The Issuer has breached any contractual obligation towards the Climate Bonds Initiative.

Box D3: Maintaining SLD Certification
Applicants seeking to maintain Entity Certification must submit the following
documents to the Climate Bonds Standard Board Secretariat on an annual basis:iii. A completed Climate Bonds Information Form;
iv. The annual Verification Report by an Approved Verifier which meets therequirements of Clause D.2.4.
If the Climate Bonds Standard Board is satisfied that the Applicant is in conformancewith the ongoing requirements, it will provide a statement confirming the certified
status of the SLD instrument.

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D

D

D.3. Transition Plan linked to the SLD instrument
D.3.1. Climate Performance
D.3.1.1. Climate Mitigation Performance Targets
The Climate Mitigation Performance Targets to which the SLD instrument is linked meetthe following requirements.
D.3.1.1.1. Time horizon
The Climate Mitigation Performance Targets cover the time from the date ofCertification to the date the activity is intended to hit net zero emissions, or 2050,
whichever is sooner.
D.3.1.1.2. Interim Climate Mitigation Performance Targets
The Climate Mitigation Performance Targets include interim targets on a three-yearlybasis for the term of the SLD instrument and a five-yearly basis thereafter over the
full-time horizon described in Clause D.3.1.1.1.
D.3.1.1.3. Alignment with decarbonisation pathwaysof the Climate Bonds Standard
All interim Climate Mitigation Performance Targets (per Clause D.3.1.1.2) representing
economic activities that contribute to meeting the Compliance Threshold (seeClause D.2.3) are benchmarked against the climate mitigation criteria in the Climate
Bonds Standard Sector Criteria and align with those criteria by 31 December 2030
at the latest.
N.B. Different levels of SLD Certification are awarded depending on the date the
Climate Mitigation Performance Targets align with the Climate Bonds Standard Sector
Criteria – see Box D4.
D.3.1.1.4. Board approval
The Board of the Issuer has approved the Climate Mitigation Performance Targets noearlier than one year prior to application for Certification.

Box D4: Two levels of SLD Certification
Two levels of SLD Certification levels are available, depending on when the Climate
Mitigation Performance Targets align with the Climate Bonds Standard Sector Criteria.
3. Level 1 – “Aligned”: The Climate Mitigation Performance Targets align with the
Climate Bonds Standard Sector Criteria at the time of certification and thereafter
until the date the Climate Mitigation Performance Targets represent net zero emissions
or 2050, whichever is sooner.
4. Level 2 – “Transition”: The Climate Mitigation Performance Targets do not alignwith the Climate Bonds Standard Sector Criteria at the time of certification butalign by 31st December 2030 and thereafter until the date the Climate Mitigation
Performance Targets represent net zero emissions or 2050, whichever is sooner.
In addition, for both levels, the Delivery Strategy and governance for the achieving
those Climate Mitigation Performance Targets meet the requirements described in
Clauses D.3.2 and D.3.3, respectively, the Parent Group complies with the requirements
described in Clause D.4 and the disclosure requirements of Clause D.5 are met.

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D.3.1.2. Climate Adaptation & Resilience Performance
The economic activities of the Issuer represented by the Climate Mitigation Performance
Targets linked to the SLD instrument also meet any climate adaptation and resilience
requirements in the relevant Climate Bonds Standard Sector Criteria.

D.3.2. Delivery Strategy
D.3.2.1. Board approval of the Delivery Strategy
If a Delivery Strategy is required* for the economic activity(ies) represented by the
Climate Mitigation Performance Targets per Clause D.3.1.1., that Strategy:• Includes all the elements listed in Clauses D.3.2.2. and D.3.2.3.; and• Has been approved by the Board of the Issuer no more than one year prior to theapplication for Certification.
* See supplementary guidance for the list of economic activities that do/ do not requirea Delivery Strategy.
D.3.2.2. Foundations
The Delivery Strategy includes the following foundational elements.
D.3.2.2.1. Vision
A Vision outlining the long-term strategic objectives and priorities for the economic
activity(ies) of the Issuer represented by the Climate Mitigation Performance Targets ofClause D.3.1.1., including the long-term vision for its physical assets and operating model.
D.3.2.2.2. Strategic Narrative
A Strategic Narrative describing how each of the economic activity(ies) of the Issuer
represented by the Climate Mitigation Performance Targets will evolve from theircurrent position to the Vision of Clause D.3.2.2.1. taking into account business context.
D.3.2.2.3. Broader social and environmental alignment
A position statement aligning the Vision and Strategic Narrative of Clauses
D.3.2.2.1 and D.3.2.2.2. with the Issuer’s broader environmental and social
objectives, strategies and/ or policies, in particular demonstrating that effects on
biodiversity sensitive areas, emissions to water and hazardous waste have beentaken into account.
In addition, the Issuer is not subject to a complaint to a National Contact Point of theOECD regarding Responsible Business Conduct of Multinational Enterprises.
D.3.2.3. Implementation plans
Implementation plans include the following.
D.3.2.3.1. Action Plan for scope 1 & 2 emissions
A time-bound plan of the trackable actions the Issuer will take or is taking to
implement its decarbonisation strategy as described in the Vision and Strategic
Narrative and thereby deliver its Climate Mitigation Performance Targets regarding
scope 1 & 2 emissions.
This includes interim milestones and metrics annually for the first five years ofcertification, three-yearly for the subsequent nine years and a five-yearly thereafter.

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D

D.3.2.3.2. Action Plan for scope 3 emissions
A time-bound plan of the trackable actions the Issuer will take or is taking to
implement its decarbonisation strategy as described in the Vision and Strategic
Narrative and thereby deliver its Climate Mitigation Performance Targets regarding
scope 3 emissions.
This includes interim milestones and metrics annually for the first five years ofcertification, three-yearly for the subsequent nine years and a five-yearly thereafter.
N.B. This is only required if the relevant Climate Bonds Standard Sector Criteria
address scope 3 emissions.
D.3.2.3.3. Finance Plan
A Finance Plan detailing the financial implications of the Strategic Narrativeand Action Plans, and the trackable actions being taken/ to be taken to deliver
this Finance Plan.
This includes interim milestones and metrics annually for the first five years ofcertification, three-yearly for the subsequent nine years and a five-yearly thereafter.
D.3.2.3.4. Internal policy alignment
Information on the key internal policies and conditions developed or to be
developed to enable the delivery of the Climate Mitigation Performance Targets,
Strategic Narrative, Action Plans and Finance Plan, explaining how each of thesepolicies supports specific elements and milestones in the Strategic Narrative, Action
Plans and Finance Plan.
D.3.2.3.5. Sensitivity analysis
Sensitivity analysis identifying the key sensitivities and risks to the Vision, Strategic
Narrative, Action Plans and Finance Plan that have the potential to decisively impact
the delivery of the Climate Mitigation Performance Targets.

D.3.3. Governance
The following accountability mechanisms are in place to govern the delivery of the Climate
Mitigation Performance Targets (per Clause D.3.1.1.) and the associated Delivery Strategy(per Clause D.3.2.)
D.3.3.1. Board and senior executive responsibility
D.3.3.1.1. Board mandate
The Board (or equivalent governance body) has a clear mandate to:• Oversee the design of the Climate Mitigation Performance Targets and Delivery
Strategy; and• Approve the Climate Mitigation Performance Targets and Delivery Strategy; and• Oversee the execution and monitor progress with the Delivery Strategy; and• Approve and monitor any corrective actions required where interim Climate
Mitigation Performance Targets and Delivery Strategy milestones are not being met.
D.3.3.1.2. Senior management responsibility
Senior management has responsibility for execution of the Delivery Strategy, and the
responsible parties have authority and access to resources to ensure execution.
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D.3.3.2. (Re)setting and monitoring the Climate Mitigation Performance Targets
and Delivery Strategy
D.3.3.2.1.(Re) setting Climate Mitigation Performance Targets
and the Delivery Strategy
Tools and mechanisms are in place for the (re) setting of robust Climate Mitigation
Performance Targets and the Delivery Strategy, including a full review and, if
necessary, update of the Climate Mitigation Performance Targets and the Delivery
Strategy at least every five years.
D.3.3.2.2. Tracking and monitoring delivery
Tools and mechanisms are in place for tracking and monitoring of delivery of interim
Climate Mitigation Performance Targets and the milestones and metrics identified in
the Action Plans and Finance Plan.
D.3.3.3. Correction of underperformance
In the event that interim Climate Mitigation Performance Targets and milestones andmetrics due during the period of Certification have not been met, corrective action
must be taken to reverse that under-performance so no interim Climate Mitigation
Performance Target or milestone or metric is unmet for a period longer than 12 months,
or by the maturity of the SLD instrument, whichever is earlier.

D.4. Commitments of the Parent Group
D.4.1. Exclusions
D.4.1.1. Expansion of fossil fuel activities
If any legal entity within the Parent Group is in the business of the exploration or
extraction of fossil fuels, or is a utility company generating or supplying power or heatgenerated from fossil fuels, then the Parent Company has, within the last year, publicly(re)committed to no expansion of any of the following activities across the Parent Groupafter 1 January 2023:
i. The exploration and extraction of proven conventional and unconventional fossil
fuel reserves; andii. The exploration of new conventional and unconventional fossil fuel resources;andiii. Natural gas production; andiv. Refining crude oil to produce derivative products; andv. The supply and/or use of fossil fuels for power generation and heat.
D.4.1.2. Conversion of high-carbon-stock land
The Parent Company has, within the last year, publicly (re)committed that as of 1 Jan
2020, no entity within the Parent Group has or will convert, fragment, or unsustainably
intensify operations on high-carbon stock land leading to the loss of its status as highcarbon stock land.

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DD.4.2. Net zero Commitment

D

The Parent Company has approved and made public net zero emissions commitments
covering all material scope 1, 2 and 3 emissions of the entire Parent Group or already has
net zero emissions as determined in line with the GHG Protocol and based on emission
data that is independently verified/audited and not more than two years old.

D.4.3. Transition Plans
The Parent Company has approved and made public corresponding transition plans to
support net zero targets for the Parent Group (per Clause D.4.2).

D.5. Disclosure
D.5.1. Information to disclose
The Issuer publishes and keeps accessible on their website the information presented inTable D1.

D.5.2. Format of disclosure
Disclosures must be made according to the customary practices regarding corporate
disclosures, such as via annual reporting, dedicated sustainability reporting, statutory
filings, and investor presentations, but this is at the discretion of the Issuer.

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Table D1: Disclosure requirements for SLD Certification
Relevantclause

Pre-Certification disclosure

D.2.1 Issuer
control

The name of the Issuer.

D.2.2. Boundaryof the economic
activities

All economic activities of the Issuer, noting which areincluded within the boundary of the Climate Mitigation
Performance Targets linked to the SLD instrument andwhich are not, and the rationale for that.

D.2.3. Obtaining
SLD Certification

Which economic activities of the Issuer have been counted
towards the 90% Certification Threshold and which have not.

Annual disclosure
thereaftern/a

The method used to disaggregate and weight thosedifferent economic activities within the portfolio ofactivities of the Issuer (revenue or emissions) to determine
compliance with the Certification Threshold.
Which legal entities form part of the Parent Group, and theeconomic activities they practice.
The assurance/external review provider.
The level of assurance obtained (limited assurance orreasonable assurance) where relevant.
The professional standard(s) against which the Verification
Engagement was performed.
The Approved Verifier’s pre-Certification Verification Report.
D.2.4
Maintaining SLD
Certification

n/a

The assurance provider.
The level of assurance
obtained where relevant.
The professional
standard(s) against which
the Verification Engagement
was performed.
The Approved Verifier’sannual Verification Report.
Any revocation of
Certification.

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Relevant clause

Pre-Certification disclosure

Annual disclosure thereafter

D.3.1.1. Climate
Mitigation
Performance
Targets

The interim Climate Mitigation Performance
Targets over the full-time horizon i.e., ona three-yearly basis for the nine years
following certification, and a five-yearlybasis thereafter until the activity reaches net
zero emissions or 2050, whichever is sooner(per Clauses D.3.1.1.1 and D.3.1.1.2).

Whether any interim Climate Mitigation
Performance Targets falling due since theprevious Verification Engagement havebeen met (per Clause D.3.1.1.2).

The Climate Bonds Standard Sector Criteriathat the Climate Mitigation Performance
Targets have been assessed against (perClause D.3.1.1.3).

If interim Climate Mitigation Performance
Targets falling due since the previous
Verification Engagement have not beenmet, the corrective actions that will
ensure compliance within 12 months orby the maturity of the SLD instrument,
whichever is earlier (per Clause D.3.3.3.).

The date the Climate Mitigation
Performance Targets were approved by the
Board of the Issuer.

Any resetting of future interim Climate
Mitigation Performance Targets (perClause D.3.3.2).
The date any Climate Mitigation
Performance Targets reset since the last
Verification Engagement were approvedby the Board of the Issuer.

Whether the Climate Mitigation Performance
Targets align with the Sector Specific Criteria
at the time of Certification. If not, the year bywhich they are expected to align.
Related to that, whether Certification is Level
1 (“Aligned”) or Level 2 (“Transition”) (perClause D.3.1.1.3).

D.3.2.1. Approvalof the Delivery
Strategy

The economic activities represented by the
Climate Mitigation Performance Targets towhich the SLD instrument is linked that arecovered by a Delivery Strategy.

Whether alignment with the Climate
Bonds Standard Sector Criteria has beenachieved (per Clause D.3.1.1.3).
Any changes to the expected date the
Climate Mitigation Performance Targets
are expected to align with the Climate
Bonds Standard Sector Criteria (earlier
or later) and any related change tothe Level of Certification awarded (perClause D.3.1.1.3).
The date of Board approval of any changes
to the Delivery Strategy reset since theprevious Verification Engagement.

In cases where some or all of the economic
activities represented by the Climate
Mitigation Performance Targets to which the
SLD instrument is linked are not required tohave a Delivery Strategy, whether and, if so,when a Delivery Strategy will be adopted.
The date of Board approval of the
Delivery Strategy.

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DRelevant clause

Pre-Certification disclosure

Annual disclosure
thereafter

D.3.2.2.1.
Foundationsof the Delivery
Strategy – Vision

A description of the Vision addressing the elements
described in Clause D.3.2.2.1., and how this aligns with thedelivery of the Climate Mitigation Performance Targets.

Any amendments to the
Vision since the previous
Verification Engagement.

D.3.2.2.2.
Foundationsof the Delivery
Strategy –Strategic
Narrative

A description of the Strategic Narrative addressing:

The extent, role and source of any carbon offsets, carbon
removals and avoided emissions the Issuer anticipates
employing to address any residual emissions over andabove those required to meet the Climate Bonds Standard
Sector Criteria.

• Current GHG emissions, in absolute emissions terms andany other metrics such as emissions intensity detailed
in the Climate Bonds Standard Sector Criteria. Including
information on the current sources and volume of
GHG emissions and how and by whom this has been
calculated and verified.

Any significant amendments
to the Strategic Narrative
since the previous
Verification Engagement.

• Key decarbonisation levers, their anticipated timing andemissions reduction impact.
• Assumed market trends, business growth, pricing anddemand underpinning the transition strategy as well as
regulatory and government policy assumptions.
• Significant challenges in delivering the strategy.
• Significant areas of uncertainty in estimation,
assumptions, or outcomes.
• How the Issuer embedded the strategy in its wider
business model, highlighting key implications for
products and services, resourcing and operational andcapital expenditure, acquisitions, or divestments.
D.3.2.2.3.
Foundationsof the Delivery
Strategy–Broaderenvironmental
and socialalignment

A summary assessment of the negative environmental
or social externalities related to delivering the Vision andStrategic Narrative.
A summary description of the steps that the Issuer istaking, or planning to take, to mitigate those impacts.
A summary description of if, and if so how, thedecarbonisation transition contributes to the Just Transitionin the region in which the activities are carried out.

Climate Bonds Standard Version 4.1

An update on theassessment of thenegative environmental
or social externalities
related to main actions
supporting the Delivery
Strategy, and the steps
that the Issuer is taking,or planning to take, tomitigate those impacts.

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DRelevant clause

Pre-Certification disclosure

Annual disclosure thereafter

D.3.2.3.1.
Implementation
Plans – Action
Plan for scope 1& 2 emissions

A high-level description of the Action Plan for
Scope 3 Emissions describing the objectives,
scope of coverage and actions that will be taken
to reduce value chain emissions necessary
for delivery any related decarbonisation leveridentified in the Strategic Narrative.

Progress and track record against
the interim milestones and metrics
identified in the Action Plan for
Scope 3 Emissions.

The interim milestones and metrics that will
enable assessment of progress in the delivery of
the Action Plan for Scope 3 Emissions.

Where any milestones or metrics
falling due since the previous
Verification Engagement have been
not been met, the corrective actions
being taken to address this within 12
months (in line with Clause D.3.3.).
Any significant amendments to
the Action Plan for Scope 3
Emissions since the previous
Verification Engagement.

D.3.2.3.3.
Implementation
Plans – FinancePlan

A description of the financial implications of
the planned changes to the Issuer’s businessstrategy, resource allocation and products andservices arising from its climate mitigationtransition, including relevant financial plans andinvestment where possible.
An explanation of how the above impacts
have been integrated into general purpose
financial reporting.
The financial metrics and targets that will be
used to assess progress in the delivery of the
Finance Plan and the current value of thosemetrics, and the methodologies by which thosemetrics will be calculated.

Progress and track record against
the interim financial milestones
and metrics.
Where any milestones or metrics
falling due since the previous
Verification Engagement have been
not been met, the corrective actions
being taken to address this within 12
months (in line with Clause D.3.3.).
Any significant amendments to the
Finance Plan since the previous
Verification Engagement.

Metrics that have significant estimation
uncertainty, noting the sources and nature of
the estimation uncertainties and the factors
affecting the uncertainties.
D.3.2.3.4.
Implementationplans - Internal
policy alignment

The key internal policies that need to be
developed to execute the Delivery Strategy andachieve the Climate Mitigation Performance
Targets, and a schedule for their development
and implementation.

Climate Bonds Standard Version 4.1

Progress against the schedule fordeveloping and implementing theidentified internal policies key to the
execution of the Delivery Strategy
and achievement of the Climate
Mitigation Performance Targets.

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DRelevant clause

Pre-Certification disclosure

Annual disclosure
thereafter

D.3.2.3.5.
Implementation
Plans –
Sensitivity
analysis

Key sensitivities and risks around the Delivery Strategy
and the achievement of the Climate Mitigation
Performance Targets.

Any significant changes tothe results of the Sensitivity
Analysis since the previous
Verification Engagement.

The threshold or methodology for determining which
sensitivities and risks have been identified as key, taking
into account the materiality of cumulative or aggregateduncertainties or challenges.
Quantification of the potential impact in terms of thelikelihood, timing and cost of delivery of the Climate
Mitigation Performance Targets.

How these changes havebeen addressed in the
Vision, Strategic Narrative,
Action Plans and/ or
Finance Plan
as appropriate.

How these impacts are reflected in the Strategic Narrative,
Action Plans and Finance Plan.
D.3.3.1.
Governance- Board andsenior executive
responsibility

The named individual, committee or Board responsible for
the Transition Plan.
The management structure in place for executing theTransition Plan.
How frequently the Board reviews the Transition Plan, andhow frequently the Board will monitor and receive reports
on progress against the Climate Mitigation Performance
Targets and Delivery Strategy.
How the Issuer ensures adequate climate expertise (e.g.,management expertise, provided resources, trainings, skill
acquisition).
Any KPIs tied to Board, CEO or other senior executive
compensation plans that are aligned with theorganization’s climate goals, as described in theTransition Plan.

Any changes to the named
individual, committee, orBoard responsible for theTransition Plan.
Any changes or additions toclimate and/ or transitionrelated KPIs tied to Board,
CEO or other senior
compensation plans.
Performance against thedisclosed responsibilityrelated metrics and targets.

Any responsibility-related targets and progress against
those targets.

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Pre-Certification disclosure

Annual disclosure
thereafter

D.3.3.2.
Governance (Re)setting andmonitoring
the Climate
Mitigation
Performance
Targets andTransition Plan

Information on internal controls that are in place toscrutinise the Transition Plan including any relevantinternal assurance functions such as internal audit.

Any changes to thecontrols, tools andmechanisms disclosed
in the previous
Verification Engagement.

Stakeholder communication and feedback mechanisms,
including whether the Transition Plan is scrutinised byshareholders (such as through an advisory vote at theentity’s Annual General Meeting, or resolution subject toshareholder approval).
Information on the process and internal controls formonitoring and tracking performance regarding the interim
Climate Mitigation Performance Targets and milestones andtargets identified in the Action Plans and Finance Plan. This
includes information on any tracking and estimation tools,
including but not limited to GHG performance tools, andany equivalents for Climate Mitigation Performance Targets
that are not expressed in terms of GHG emissions.

If the scheduled review
fell due since the previous
Verification Engagement,
all reset Climate Mitigation
Performance Targets
and Delivery Strategy
disclosure requirements
detailed under Clauses
D.3.1 and D.3.2.
Any changes to the date of
the next scheduled review.

Information on the process for regularly reviewing
the Transition Plan to ensure material updates areincorporated and challenges are addressed.
Commitment by the Issuer to review the Transition Plan atleast every 5 years.
Date of the last and the next scheduled review.
D.3.3.3.
Governance- Correctionof underperformancen/a

Any corrective actions
planned to address any
underperformance, withan explanation of how
they will address that
underperformance.

D.4.1. Parent
Group
Commitments –Exclusions

Commitment by the Parent Company on behalf of the
Parent Group to zero future expansion of any of theactivities detailed in Clause D.4.1.1.

Statement from the Parent
Company on behalf of the
Parent Group that no entity
within the Parent Grouphas expanded any of theactivities detailed in Clause
D.4.1.1 since the previous
Verification Engagement.

Statement by the Parent Company on behalf of the
Parent Group that no entity within the Parent Group has
expanded any of the activities detailed in Clause D.4.1.1
since 1 January 2023.
Commitment by the Parent Company on behalf of the
Parent Group that no entity within the Parent Group will oris planning to convert high carbon stock land as detailedin Clause D.4.1.2.
Statement by the Parent Company on behalf of the
Parent Group that no entity within the Parent Group has
converted high carbon stock land (as detailed in Clause
D.4.1.2) since 1 January 2020.

Climate Bonds Standard Version 4.1

Statement by the Parent
Company on behalf of
the Parent Group that noentity within the Parent
Group has converted
high carbon stock land(as detailed in Clause
D.4.1.2) since the previous
Verification Engagement.
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DRelevant clause

Pre-Certification disclosure

Annual disclosure thereafter

4.2. Parent
Group
Commitments- Net zerocommitment

Commitment by the Parent Company to net
zero emissions and the expected date for net
zero – covering the entire Parent Group(per Clause D.4.2).

Any changes to the net zerocommitment for the Parent Group(per Clause D.4.2.).

4.3. Parent
Group
Commitments –Transition Plan

A description of the Transition Plan outlining
how the Parent Group will achieve net zero
emissions (per Clause D.4.3).

Any updates to the Transition
Plan for the Parent Group(per Clause D.4.3)
If any part of the Parent Grouppractices any of the activities
described under Clause D.4.1.1.,
the expected timing to fullycease those activities.

INDEPENDENT OF ANY CLAUSES ABOVE
SLD instrument
financial andstructuralcharacteristics

Potential change of bond financial and/or
structural characteristics and the trigger events
leading to such a change.
Potential extreme/ exceptional events suchas M&A that could subsequently impact
the restatement of a Climate Mitigation
Performance Target.

Climate Bonds Standard Version 4.1

Potential change of bond financial
and/or structural characteristics
and the trigger events leading tosuch a change
Potential extreme/ exceptional
events such as M&A that could
subsequently impact therestatement of a Climate Mitigation
Performance Target.

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DANNEX 1 - Types of Use of Proceeds
Instruments that can be Certified
There are various types of green financial instruments eligible for Certification under
the Climate Bonds Standard. Use of Proceeds debt instruments that may be eligible for
Certification under the Climate Bonds Standard version 4.1 include the following:
Bilateral Loan: commercial, multilateral and development banks offer credit lines totheir corporate and institutional customers to finance specific green projects with set
criteria and reporting requirements. The loans may or may not be public, and theterms vary considerably.
Certificate of Agribusiness Receivables (CAR): title backed by agribusiness credit,
created by the Brazilian government to encourage the financing of the agricultural sector’s
production chain. These instruments are issued by securitisation vehicles and sold toinvestors in capital markets to finance the purchase of the feedstock.
Commercial Paper: is unsecured, short-term debt commonly issued by companies orfinancial institutions to finance short-term liabilities. The proceeds mainly contribute to
general corporate purposes and working capital financing.
Convertible Bonds or Notes: Bonds or notes, either listed or unlisted, which have theright but not the obligation to convert into a specified number of ordinary shares (or othersecurities) under specified terms and conditions. If the bond or note was Certified when
it was issued and then later converted to equity, its status as a Certified Instrument would
end at the conversion point.
Covered Bond (Pfandbrief): a dual recourse bond which relies primarily on repayment
from the issuer but also has access to a pool of assets (the cover pool). The cover pooloften comprises mortgages, but other assets can be used as collateral too. For instance, theGerman Pfandbrief market includes Mortgages Pfandbrief, Public Pfandbrief, Ship and Aircraft
Pfandbrief. In Luxembourg, it is possible to issue renewable infrastructure-covered bonds.
Debt Instruments issued by a Green Bond Fund: A Green Bond Fund is a fund whichinvests in green bonds based on a set of screens or criteria. Screens for the fund can
include that the underlying projects and assets must meet the relevant Sector Criteria of
the Climate Bonds Standard. The fund will likely issue securities such as units in a trust or
use similarly structured arrangements to raise equity.
Export Financing in Brazil: Advance on Export Exchange Contracts or Advance on Export
Shipping Document Contracts
Export Letters of Credit: issued by banks, guaranteeing future payment (upon receipt ofgoods) to the exporter. These instruments are used in trade with developing countries and/or importers of relatively weak credit quality. Certification requires the Approved Verifier toconfirm that the UoP of the importer is aligned with the Climate Bonds Criteria.
Floating Rate Notes: notes that have a variable interest rate tied to a benchmark rate.
Interest is usually paid quarterly, and the term is several months/years. FRNs are popularwith US corporates with quarterly re-issuance.
Green Deposits: client funds held by a financial institution which are clearly identified andallocated to a portfolio of projects and assets which meet the relevant Sector Criteria of the
Climate Bonds Standard. Green Deposits usually have a maturity of up to one year and are
accepted by financial institutions. Depositors are often institutional investors. Non-banks(e.g., securitisation vehicles) may issue green units or notes.

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Leases: bilateral contracts whereby the owner of the asset (the lessor) grants to anotherparty (the lessee) the exclusive right to use the asset for an agreed period, for an agreed
amount payable on a periodical basis (lease rentals) over the specified lease period.
Loan Facility: a credit line made available to borrowers to finance projects and assets
which meet the relevant Sector Criteria of the Climate Bonds Standard. Loans can be
unsecured (with available recourse to the obligors) or secured (non-recourse or limited
recourse to obligors).
Project Bond: a project bond, either listed or unlisted, for a single or multiple projects forwhich the investor has direct exposure to the risk of the projects with or without potential
recourse to the issuer.
Repurchase Agreements (Repos): Repos enable short-term borrowing by banks or
corporates, usually in government or investment-grade securities. The price difference is
the implicit overnight interest rate. Repos are typically used to raise short-term capital.
Revenue Bond: a non-recourse-to-the-issuer debt obligation, either listed or unlisted,in which the credit exposure in the bond is to the pledged cash flows of the revenue
streams, fees, taxes etc.
Revolving Credit Facilities: credit lines which may be drawn by the borrower and repaid
on an ongoing basis with a short- or medium-term maturity.
Schuldschein: a traditional German floating or fixed debt instrument. Some features of a
Schuldschein are similar to those of loans, while other features are more similar to bonds.
Securitised Bond: a bond, either listed or unlisted, collateralised by one or more specificprojects or assets, including lease, loan and other revenue receivables asset Backed
Securities (“ABS”), Mortgage-Backed Securities (“MBS”) including Agency MBS, Residential
MBS, Commercial MBS, Commercial Mortgage-Backed Securities (CMBS) Collateralised
Loan Obligations (“CLO”), Collateralised debt Obligations (“CDO”), Whole Business
Securitisation (“WBS”) and other securitisation structures.
Standard Use of Proceeds Bond: a standard recourse-to-the-issuer debt obligation which
is either listed or unlisted.
Sukuk: refers to various types of quasi-debt securities developed to meet the stricturesof Islamic finance. One of the core principles underlying Islamic finance is avoiding thepayment or collection of interest. Various financial instruments have been created thatserve the same purpose as bonds and other debt securities, but on which interest is not
paid, and investors share in profit distributions.
Syndicated Loan: A loan from a number of different lenders acting together. The lenders
form a syndicate, and the borrower borrows from the syndicate. Usually structured by oneof several commercial banks or investment banks, it can also include ‘non-bank’ lenders
such as debt funds, insurance companies, hedge funds or pension funds.
Trade Finance / Receivables Financing / Factoring: where a third-party lenderbuys outstanding accounts receivable at a discount. The trader’s/exporter’s accounts
receivables effectively act as collateral. The key is whether the receivables, creditors or
stocks relate to green assets.

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