‘Second Opinion’ on
ICBC’s Green Bond Framework

22 September 2017

CICERO

Summary

Overall, the Industrial and Commercial Bank of China (ICBC) has a broad Green Bond Framework that is
supportive of a low carbon and climate resilient future. ICBC has developed a long-term strategy to be a worldleading green financial institution. The Bank has implemented a Green Credit policy and integrated
environmental assessment into the overall credit policy of the bank.
The Eligible Green Asset Categories include a broad range of project types in the categories: renewable energy,
clean transportation, energy efficiency and sustainable water and wastewater management. The Framework
explicitly excludes fossil fuel related assets, nuclear and hydro over 20 MW.
The Green Bond Working Group is responsible for selecting eligible projects that align with the green credit
policy. The Working Group will also annually review the allocation of the proceeds to determine eligibility as
green assets. The broad range of eligible project types, coupled with the broad participation in the Working
Group places a large share of responsibility on the Working Group to select and follow up on eligible projects.
The Working Group follows the Green Credit policies in selecting eligible projects, and veto power is given toenvironmental experts. Due to the confidential nature of the Green Credit policy, CICERO was not given accessto the full policy. We were therefore unable to assess the scope and level of stringency of the policy. The
summary we have reviewed indicated priorities aligned with the Green Bond Framework. The framework hassome broad green bond categories and hence the Green Bond Working Group will have an important role in
implementing the Green Credit strategy when selecting eligible projects. Careful consideration should be takenin the energy efficiency, clean transportation and sustainable water and wastewater category to ensure theexclusion of all fossil fuel elements.
CICERO has some further concerns that not all green bond projects will be listed publicly and that only theaggregate amounts allocated to the various Eligible Green Asset Categories will be made public. These concerns
are however partially mitigated by a strength of the framework: ICBC will engage an independent third party toprovide assurance on its annual Green Bond Report. The Framework also includes impressive impact reporting.
Based on an overall assessment of the activities that will be financed by the green bond and the governance ofthe framework, ICBC’s Green Bond Framework is awarded the Dark Green shading. Due to the broad nature of
the framework, ICBC should take extra care when selecting eligible projects to ensure rigorous environmental
assessment that supports the dark green ambitions of the framework.

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Contents

Summary ______________________________________________________________________________________ 2
1

Introduction and background ________________________________________________________________ 4
Expressing concerns with ‘shades of green’ ........................................................................................................... 5

2

Brief Description of ICBC ’s Green Bond Framework and rules and procedures for climate-related
activities _________________________________________________________________________________ 6
Definition................................................................................................................................................................. 6
Selection ................................................................................................................................................................. 7
Management of proceeds ....................................................................................................................................... 8
Transparency and Accountability ............................................................................................................................ 8

3

Assessment of ICBC Green Bond framework and environmental policies__________________________ 10
Eligible projects under the Green Bond Framework .............................................................................................. 10
Strengths .............................................................................................................................................................. 12
Weaknesses ......................................................................................................................................................... 12
Pitfalls ................................................................................................................................................................... 12

Appendix: About CICERO ________________________________________________________________________ 14‘Second Opinion’ on ICBC’s Green Bond Framework3

CICERO

1

Introduction and backgroundAs an independent, not-for-profit, research institute, CICERO (Center for International Research) provides
Second Opinions on institutions’ framework and guidance for assessing and selecting eligible projects for green
bond investments, and assesses the framework’s robustness in meeting the institutions’ environmental
objectives. The Second Opinion is based on documentation of rules and frameworks provided by the institutions
themselves (the client) and information gathered during meetings, teleconferences and e-mail correspondencewith the client.
CICERO is independent of the entity issuing the bond, its directors, senior management and advisers, and isremunerated in a way that prevents any conflicts of interests arising as a result of the fee structure. CICERO hasestablished the global Expert Network on Second Opinions (ENSO), a network of independent non-profit
research institutions on climate change and other environmental issues, to broaden the technical expertise andregional experience for Second Opinions. CICERO works confidentially with other members in the network toenhance the links to climate and environmental science, building upon the CICERO model for Second Opinions.
In addition to CICERO, ENSO members currently include Basque Center for Climate Change (BC3),International Institute for Sustainable Development (IISD), Stockholm Environment Institute (SEI), andTsinghua University's Institute of Energy, Environment and Economy. A more detailed description of CICERO
can be found at the end of this report. ENSO encourages the client to make this Second Opinion publicallyavailable. If any part of the Second Opinion is quoted, the full report must be made available.
CICERO’s Second Opinions are normally restricted to an evaluation of the mechanisms or framework for
selecting eligible projects at a general level. CICERO does not validate or certify the climate effects of single
projects, and thus, has no conflict of interest in regard to single projects. CICERO is neither responsible for how
the framework or mechanisms are implemented and followed up by the institutions, nor the outcome ofinvestments in eligible projects.
This note provides a Second Opinion of ICBC Green Bonds Framework and policies for considering theenvironmental impacts of their projects. The aim is to assess the ICBC Green Bonds Framework as to its ability
to support ICBC`s stated objective of promoting the transition to low-carbon and climate resilient growth.
This Second Opinion is based on the green bond framework presented to CICERO by the issuer. Anyamendments or updates to the framework require that CICERO undertake a new assessment. CICERO takes along-term view on activities that support a low-carbon climate resilient society. In some cases, activities ortechnologies that reduce near-term emissions result in net emissions or prolonged use of high-emitting
infrastructure in the long-run. CICERO strives to avoid locking-in of emissions through careful infrastructure
investments, and moving towards low- or zero-emitting infrastructure in the long run. Proceeds from green
bonds may be used for financing, including refinancing, new or existing green projects as defined under themechanisms or framework. CICERO assesses in this Second Opinion the likeliness that the issuer's categories ofprojects will meet expectations for a low carbon and climate resilient future.

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Expressing concerns with ‘shades of green’
CICERO Second Opinions are graded dark green, medium green or light green, reflecting the climate andenvironmental ambitions of the bonds and the robustness of the governance structure of the Green Bond
Framework. The grading is based on a broad qualitative assessment of each project type, according to what
extent it contributes to building a low-carbon and climate resilient society.
This Second Opinion will allocate a ‘shade of green’ to the green bond framework of ICBC:






Dark green for projects and solutions that are realizations today of the long-term vision of a low carbon
and climate resilient future. Typically, this will entail zero emission solutions and governance structuresthat integrate environmental concerns into all activities.
Medium green for projects and solutions that represent steps towards the long-term vision, but are notquite there yet.
Light green for projects and solutions that are environmentally friendly but do not by themselvesrepresent or is part of the long-term vision (e.g. energy efficiency in fossil-based processes).
Brown for projects that are irrelevant or in opposition to the long-term vision of a low carbon andclimate resilient future.

The project types that will be financed by the green bond primarily define the overall grading. However,
governance and transparency considerations also factor in, as they can give an indication whether the institutionthat issues the green bond will be able to fulfil the climate and environmental ambitions of the investment
framework.

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2

Brief Description of ICBC ’s Green Bond
Framework and rules and procedures forclimate-related activities

Industrial and Commercial Bank of China (ICBC) was established in 1984, and was wholly restructured to a
joint-stock limited company in 2005. On 27 October 2006, the Bank was successfully listed on both the
Shanghai Stock Exchange and the Stock Exchange of Hong Kong Limited. It is the largest bank in the world bytotal assets and the most valuable bank in the world by market capitalization as of February 2017.
ICBC’s corporate strategy includes paying attention to climate change, supporting the low–carbon economy andadvocating energy savings. According to the issuer, in recent years, ICBC has actively implemented the idea ofgreen development and green finance. The bank has either directly financed or underwritten bonds towards
energy conservation and environmental protection, pollution prevention and control, resource conservation andrecycling. ICBC had loans supporting RMB 978 billion for the green economy. 1 Last year ICBC was the largest
green bond underwriting bank in China.2
In September 2007, ICBC was the first among Chinese peers to propose the formation of green credit. After 10
years of efforts, ICBC has integrated the concept of green credit into its credit culture, and has set up a long-term
mechanism governing credit policies, measures, procedures, and product innovation aspects. In 2015, the Boardof Directors approved the ICBC Green Credit Development Strategy with aims to build “the world’s leading
green credit bank”.
The green credit policy system is mainly composed of:1) Annual assessments of the credit policies of each sector where energy consumption, technologies,
techniques, and environmental protection are key credit indicators that reflect the core competitiveness andrisk levels of each sector.
2) An internal green credit categorization of corporate loans in reference to Equator Principles and IFC key
KPIs. Clients and loans are classified into four levels and twelve classes depending on the environmental
impacts. The green credit categorization has implications on the overall evaluation and are associated withcorresponding management requirements.
3) Supporting and guarantee mechanisms such as environmental risk monitoring and green credit appraisals on
the overall credit performance. The Green Credit Strategy includes a One-Veto System where failure tomeet requirements may led to credit not being extended.
ICBC has been a pioneer of green credit studies in China and has published a study named "Impact ofEnvironmental Factors on Credit Risk of Commercial Banks —Research and application by ICBC based onstress test".

Definition
According to ICBC’s Green Bond Framework, green bond proceeds could cover both new financing andrefinancing. The issuer has informed us that the initial issuance will be comprised of 100% refinancing, with
future issuances prioritizing the financing of new assets. Global green assets that promote the transition to low1

ICBC 2016 CSR Report
http://www.icbcltd.com/icbc/en/newsupdates/icbc%20news/ICBCBecomestheLargestGreenBondUnderwritingBankinChina.htm
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carbon and sustainable economy and provide clear environmental sustainability and climate change benefits are
eligible. Green bond proceeds will not finance fossil fuel related assets, hydro greater than 20 MW or nuclear
projects.

Selection
ICBC Eligible Green Assets are selected from the green asset pool in accordance with the Bank’s Green Credit
Policies. In 2010 and 2015, the Bank amended and published the Opinions on Advancing Green Credit
Development, which specified the veto power by environmental risk and the integration of green credit
management requirements into the full life-cycle credit process. Green credit management now covers customer
due diligence, project assessment and approval, contract signing as well as post-lending management.
Environmental and Social (E&S) risk factors are included as key criteria in assessing the overall risks of acustomer and project. E&S risks are potential hazards and risks to the environment and society, including issues
such as energy consumption, pollution, land, health, safety, immigration settlement, ecological protection andclimate change risks caused by client behavior or project construction, manufacturing, and operation. The
Strategy points out that the Bank shall put strict controls over credit allocation to high pollution and heavy
emission sectors.
After a project is identified and proposed by a business unit, a dedicated Green Bond Working Group reviews
the assets. The Working Group includes representatives of the Credit and Investment Management Department(which is responsible for implementing the Green Credit policies, and reviews all eligible green assets todetermine compliance with the Framework and reviews the allocation annually), the Corporate Strategy andInvestor Relations Department (which is responsible for implementing social responsibility strategies), and the
Urban Finance Research Institute (an in-house think tank which provides input to the standing committee ofChina's Green Finance Committee under the PBoC3), and Asset and Liability Management Department(responsible for overall management of the proceeds raised and especially the unallocated proceeds) among
other departments detailed in the Framework. The Green Bond Working Group holds meetings to discuss theeligibility of each proposed green asset and whether or not to include the asset in the Eligible Green Asset List.
On the Working Group, there are experts with environmental experience and knowledge who have a veto right tothe final selection decision.
Annually the Green Bond Working Group will review all newly proposed and existing Eligible Green Assets todetermine their compliance with the ICBC Green Bond Framework. This Working Group will also annuallyreview the allocation of the proceeds to determine eligibility as green assets, and to facilitate ongoing reporting.
According to the issuer, the Green Bond Working Group will decide any necessary update of the “Eligible Green
Asset List” (such as replacement, deletion, or addition of projects) to maintain the eligibility of the Use ofProceeds. In case of non-compliance, the assets will be deleted and replaced by new Eligible Green Assets.
ICBC’s green bond framework has been developed in accordance with the Green Bond Principles (2017) by
ICMA, Guidelines for Establishing the Green Financial System (Yinfa 2016 Doc No. 228) by People’s Bank of
China (PBoC), Ministry of Finance, National Development and Reform Commission (NDRC), Ministry ofEnvironmental Protection, China Banking Regulatory Commission (CBRC), China Securities Regulatory
Commission (CSRC) and China Insurance Regulatory Commission (CIRC), Green Bond Categories by PBoC,
as well as ICBC’s internal green credit policies, and will have draw-downs that may also certified by CBI against

3

According to the issuer, the Institute includes experts on environmental stress testing and also published the Impact ofEnvironmental Factors on Credit Risk of Commercial Banks.
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Climate Bond Standards. Green assets aligned with the above-mentioned standards will be regarded as eligible
green assets.

Management of proceeds
The issuer will establish a register to record the allocation of green bond proceeds. The proceeds of each ICBC
Green Bond will be deposited in the general funding accounts and “earmarked” pending allocation. The Register
will contain, for each Green Bond issued, information including details of the green bond and the Eligible Green
Asset List.
Any balance of issuance proceeds not allocated to Eligible Green Assets will be held in accordance with ICBC’s
normal liquidity management policy. According to the issuer, the unallocated proceeds could be temporarily
used domestically and internationally in money market instruments with good credit rating and market liquidity
until they are allocated to Eligible Green Assets. The unallocated proceeds shall not be invested in highly
polluting or energy intensive projects.

Transparency and Accountability
ICBC commits to publish an Annual Green Bond Report including use of proceeds and impact reporting. The
bank will provide information on amounts allocated to the various Eligible Green Asset Categories and amount
not yet allocated. The report will also include examples of Green Projects from each Eligible Green Asset
Category on a best-effort basis according to the issuer (subject to confidentiality disclosures and availability of
information). ICBC will confirm that the use of proceeds of the Green bond issuance conforms to this Green
Bond Framework.
ICBC will report annually on the environmental and social (where relevant) impacts per Eligible Green Asset
Category, using relevant impact indicators as defined in the Framework, resulting from the allocation ofproceeds to green assets. According to the issuer, in the case where actual impacts are unknown, estimates ofpotential impacts will be disclosed. The Annual Green Bond Report will be made public via annual updates on
ICBC’s website. ICBC will engage an independent third party to provide assurance on its annual Green Bond
Report.
The table below lists the documents that formed the basis for this Second Opinion:

Document

Document Name

Description

Number1

Green bond framework (September 2017)2

http://www.unglobalcompact.org/what-is-

In 2012, ICBC became the first Chinese commercial bank to join

gc/participants/17005-Industrial-and-the United National Global Compact

Commercial-Bank-of-China-Limited/3

http://www.unepfi.org/member/industrial-and-In October 2014, ICBC signed the Declaration on Environmentcommercial-bank-of-china-limited/

and Sustainable Development and joined the United Nations‘Second Opinion’ on ICBC’s Green Bond Framework

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Environment Programme Finance Initiative ("UNEP FI") tobecome a member of the organization.

42016 Corporate Social Responsibility (ESG)

ICBC released the 2016 Corporate Social Responsibility (ESG)

ReportReport on 30 March 2017. This is the 10th consecutive year the
Bank published such report since 2007. KPMG Huazhen LLP
performed assurance procedures on the Report.

5

http://www.equator-principles.com/

ICBC makes references to the Equator Principles in its Green
Credit policies. The Equator Principles is a risk management
framework, adopted by financial institutions, for determining,assessing and managing environmental and social risk in projects
and is primarily intended to provide a minimum standard for due
diligence to support responsible risk decision‐making.

6

www.greenfinance.org.cn

In 2015, when the Green Finance Committee was establishedunder the China Financial Forum, ICBC was a standing council
member.

7

Impact of Environmental Factors on Credit Risk ICBC has actively been engaged in Green Finance Studies
of Commercial Banks —Research andapplication by ICBC based on stress test

8

Summary of ICBC Green Credit Strategies andShort summary of Green Credit policy in English

Credit Policies

Table 1. Documents reviewed‘Second Opinion’ on ICBC’s Green Bond Framework

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3

Assessment of ICBC Green Bondframework and environmental policies

The framework and procedures for ICBC’s green bond investments are assessed and their strengths andweaknesses are discussed in this section. The strengths of an investment framework with respect toenvironmental impact are areas where it clearly supports low-carbon and climate resilient projects, whereas the
weaknesses are typically areas that are unclear or too general. Pitfalls are also raised in this section to note areas
where issuers should be aware of potential macro-level impacts of investment projects.

Eligible projects under the Green Bond Framework
At the basic level, the selection of eligible project categories is the primary mechanism to ensure that projects
deliver environmental benefits. Through selection of project categories with clear environmental benefits, green
bonds aim to provide certainty to investors that their investments deliver environmental returns as well as
financial returns. The Green Bond Principles (GBP) state that the “overall environmental profile” of a project
should be assessed and that the selection process should be “well defined”.

Eligible Green

Alignment with

Asset Categories

Green Bondfor ICBC

Principles (GBP

Eligible project types

Green Shading and some concerns

2017)
Dark greenRenewable

Renewableenergyenergy

Generation and transmission ofenergy from renewable energy
sources.
Renewable energy sources include
wind, solar, tidal, hydropower subject 
to condition, biomass and geothermal.

Consider negative local
environmental impacts.
Consider lifecycle pollution.
Consider emissions fromconstruction phase, landscapeissues and mass deposits. The
issuer notes that environmental
assessment reports will be provided
if feasible for the manufacture ofcomponents.
Observe complex impacts of somebiofuels. Consider life cycle
emissions, and avoid negative
impacts on biodiversity. The issuer
notes that an environmental
assessment report has to beprovided to prevent local pollution
impacts.
Hydro greater than 20 MW will not
be financed. Hydro plants up to 20
MW can still have negativeenvironmental impacts.4

4Environmental impacts of hydropower greater than 10 MW is under investigation by IEA and IRENA (Hydropower
Technology Brief, IRENA, 2015).
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Low Carbon and
Low Emission
Transportation

Clean
TransportationEnergyEnergyefficiency

efficiency

Low energy or emission
transportation assets, systems,
infrastructure, components andservices excluding any infrastructure
or rolling stock assets used for thetransportation of fossil fuel products
Examples include Rail Tram, Metro,
Bus Rapid Transit systems, Electric
VehiclesDevelopment of products or
technology and their implementationthat reduces energy consumption ofunderlying asset, technology, productor system(s)Examples include LED lights,
improved chillers, improved lighting
technology, and reduced power usage
in manufacturing operations

Potential for heavy metal pollution
from geothermal projects.

Dark greenThe issuer has excluded fossil fuelrelated assets.
Consider life-cycle emissions andlocal environmental impacts
Observe complex impacts of somebiofuels. Consider life cycle
emissions, and avoid negative
impacts on biodiversity.

Dark green

Be aware of lock-in of obsolete
technologies. Careful consideration
should be taken in assessing
projects to exclude fossil fuelelements to meet the aims of theframework.
The issuer notes that impact
assessment will be provided.
Be aware of rebound effects.

Improved efficiency in the delivery ofbulk energy services
Examples include district heating/cooling systems, smart grids, energy
recovery technology, and the storage,transmission and distribution ofenergy that results in reduced energy
lossesDark greenSustainable water
and wastewater
management

Sustainable
water andwastewater-

management

Water collection, treatment, recycling,re-use, technologies and related
infrastructure
Examples include water pipes andcollection facilities to collectwater/rainwater, dams, treatment plantfacilities

Consider waste recycling rates andlocal environmental impacts ofdams.
The issuer notes that every asset
has to be backed up with anenvironmental assessment report,
however we do not have any
specific detail on what that entails.
Be aware of possible lock-in ofpipes and infrastructure supporting
fossil fuel related industries.
Careful consideration should betaken in assessing projects to
exclude fossil fuel elements (e.g.
water pipelines to coal power
plants).

Table 2. Eligible project categories‘Second Opinion’ on ICBC’s Green Bond Framework

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Eligible projects can be global in nature. The issuer has informed us of the intent of the first draw-down is toprimarily fund projects based in China along the regions key to China’s “Belt and Road Initiative”.

Strengths
ICBC has developed a long-term strategy to be a green financial institution that is leading at home and top-rated
overseas. The issuer has taken several important steps in order to prove its commitments towards sustainability
Social responsibility is integrated into strategy, operation, management activities including appraisals, a global
best-practice. ICBC has published Corporate Social Responsibility (ESG) reports the last 10 years.
The Bank has developed new financing channels for the green economy in line with risk management andsustainable business growth, including but not limited to financing, leasing, equity financing, financial advisory
and carbon finance. In 2013, ICBC made a commitment to green financing in the National Green Credit Meetingorganized by the China Banking Regulatory Commission (CBRC). ICBC has signed the Declaration on
Environment and Sustainable Development and joined the United Nations Environment Programme FinanceInitiative ("UNEP FI") as a member in 2014. ICBC has been a pioneer in China in engaging in green credit
studies. The bank has published a study named "Impact of Environmental Factors on Credit Risk of Commercial
Banks —Research and application by ICBC based on stress test".
Already in 2011, ICBC formulated the "Implementation Guidelines for Green Credits" to guide the green
financing activity of the Bank. ICBC Green Credit policy classifies clients and loans into four levels and twelve
classes depending on the environmental impacts. ICBC’s Green Credit One-Veto System routinely checks thegreen credit classification of customers. The general priorities of the Green Credit policy are aligned to support
the Green Bond Framework.
ICBC explicitly excludes fossil fuel assets, nuclear and hydro over 20 MW from the Eligible Green Asset
Categories in the Framework.
Eligible green assets are selected and reviewed by the Green Bond Working Group, where environmental experts
are given veto power in project eligibility selection.
ICBC has ambitious impact reporting outlined in the Framework, with specific and relevant metrics defined by
Eligible Green Asset Category. ICBC has informed us that where actual impacts are unknown, the impacts willbe estimated. ICBC will hire an independent third party to provide assurance on its Annual Green Bond Report.

Weaknesses
Eligible projects are selected across the broad project categories in accordance with ICBC’s Green Credit
policies. CICERO has reviewed an English summary of the Green Credit strategy, but due to its confidential
nature, we were not able to review the strategy in detail. Therefore, we do not have details on how the green
credit assessment specifically safeguards against negative environmental impacts. Increased transparency on
climate-related strategies and their implementation would provide stakeholders, including investors, with a better
understanding of how the framework will be implemented.

Pitfalls
The Green Bond Framework explicitly excludes fossil fuel related assets, however, CICERO is unable to assess
how the implementation of the green credit policy will specifically screen for this (due to the confidential nature‘Second Opinion’ on ICBC’s Green Bond Framework

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CICEROof the Green Credit strategy details). The formulation in the transportation category is broad and the Green Bond
Working Group will need to carefully apply the Green Credit strategy to ensure that fossil fuel elements are
excluded to meet the ambitions of the framework. Careful consideration should further be taken in the energy
efficiency and sustainable water and wastewater categories to exclude all fossil fuel elements to avoid locking-in
GHG emissions. For example, efficiency in transmission grids and enhanced resiliency in water pipelines
directly connected to fossil fuel infrastructure should be excluded from eligible projects. The Working Group,
including its environmental experts, will have a particular responsibility to ensure a rigorous environmental
assessment that supports the dark green ambitions of the framework.
CICERO has further some concerns that not all green bond projects will be listed publicly and that only
aggregate amounts allocated to the various Eligible Green Asset Categories will be made public. These concerns
are however partially accommodated by the commitment of ICBC to engage an independent third party toprovide assurance on its annual Green Bond Report.
ICBC has a formulated Responsibility Strategy that includes low-carbon elements, however, no specificenvironmental targets are publically disclosed. The Green Bond Framework is noted as an elaboration of ICBC’s
green strategy, but without clear targets or further context it is difficult to have a good understanding of how theGreen Bond Framework supports the overall corporate green strategy.

Impacts beyond the project boundary
Due to the complexity of how socio-economic activities impact the climate, a specific project is likely to haveinteractions with the broader community beyond the project borders. These interactions may or may not be
climate-friendly, and thus need to be considered with regards to the net impact of climate-related investments.
Rebound effects
Efficiency improvements may lead to rebound effects. When the cost of an activity is reduced there will be
incentives to do more of the same activity. From the project categories in Table 2, an example is energy
efficiency. ICBC should be aware of such effects and possibly avoid Green Bond funding of projects where therisk of rebound effects is particularly high.

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Appendix:
About CICERO
CICERO Center for International Climate Research is Norway’s foremost institute for interdisciplinary climate
research. We deliver new insight that helps solve the climate challenge and strengthen inter-national climate
cooperation. We collaborate with top researchers from around the world and publish in recognized international
journals, reports, books and periodicals. CICERO has garnered particular attention for its work on the effects ofmanmade emissions on the climate and the formulation of inter-national agreements and has played an activerole in the UN’s IPCC since 1995.
CICERO is internationally recognized as a leading provider of independent reviews of green bonds, since themarket’s inception in 2008. CICERO received a Green Bond Award from Climate Bonds Initiative for being thebiggest second opinion provider in 2016 and from Environmental Finance for being the best external review
provider (2017).
CICERO Second Opinions are graded dark green, medium green and light green to offer investors better insightin the environmental quality of green bonds. The shading, introduced in spring 2015, reflects the climate andenvironmental ambitions of the bonds in the light of the transition to a low-car-bon society.
CICERO works with both international and domestic issuers, drawing on the global expertise of the Expert
Network on Second Opinions. Led by CICERO, ENSO is comprised of trusted research institutions andreputable experts on climate change and other environmental issues, including the Basque Center for Climate
Change (BC3), the Stockholm Environment Institute, the Institute of Energy, Environment and Economy at
Tsinghua University and the International Institute for Sustainable Development (IISD). ENSO operates
independently from the financial sector and other stakeholders to preserve the unbiased nature and high qualityof second opinions.
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