1Draft for Public Consultation 23042024
PART E: ENTITY CERTIFICATION FOR AGRI-FOOD
DEFORESTATION AND CONVERSION FREE SOURCINGIntroduction
Entity Certification under the Climate Bonds Standard for Agri-Food Deforestation and Conversion Free(DCF) Sourcing is available to non-financial Entities in the Agri-Food sector compliant with the ClimateBonds Standard for Entity Certification under the Agri-Food Deforestation and Conversion Free Sourcing
Criteria (Agri-Food DCF Sourcing).

1. Eligibility and Accounting Rules
1.1. Applicant control over the Certified Agri-Food DCF Entity
The Applicant must either be the same legal entity as the Certified Agri-Food DCF Entity or haveoperational control over the Agri-Food DCF Certified Entity.

1.2. Boundary of the Certified Entity
The Agri-Food DCF Certified Entity may be a group of legal entities within a Parent Group or a single
legal entity, at the Applicant’s discretion. Certification of a Parent Company must include all subsidiaries
and other controlled companies that fall in scope of Agri-Food Entities, as defined in the Agri-Food DCF
Sourcing Criteria.

1.3. Obtaining Agri-Food DCF Entity Certification
Before applying for Agri-Food DCF Entity Certification under this Part E, the Applicant receives a Verification Report from an
Approved Verifier that:i. The Certified Entity meets the Agri-Food DCF Criteria Performance requirements in Clause E2.1 andthe Governance requirements in Clause E.2.2.
ii. The Parent Group meets the Climate Safeguard requirements in Clause E.3.1.
iii. The Certified Entity and Parent Group meet the Disclosure requirements in Clause E.4.
Applicants seeking Agri-Food DCF Entity Certification must apply by submitting the following documents
to the Climate Bonds Standard Board Secretariat:
a. A completed Climate Bonds Information Form;b. The Verification Report from an Approved Verifier that meets the requirements of this Part E;
andc. An executed Certification Agreement.
If Climate Bonds is satisfied that the Applicant is in conformance with the Pre-Certification requirements, then it will
provide a statement confirming the Certification of the Certified Agri-Food DCF Entity. The Applicant must identify within
the Climate Bonds Information Form which of the information provided are confidential and which can be publicly
disclosed on the Climate Bonds Initiative website once Certification is confirmed.

2Certification is valid for five years from the date of certification, subject to compliance with the requirements laid out inClause 1.4.

1.4 Maintaining Agri-Food DCF Entity Certification
The Applicant receives an annual Verification Report from an Approved Verifier that:i. In respect of the Agri-Food DCF Certified Entity:

a. Confirms that the Certified Entity continues to be compliant with the Agri-Food DCF
Sourcing Criteria.
b. Communicates any changes in clauses E2.1 and E2.2 (DCF Sourcing Criteria
requirements and Governance) and provides verification of compliance with any changes.
c.

All disclosure requirements have been met (per Clause E.5); andii. The Parent Group remains in compliance (per Clauses E.3 and E.4); andiii. The Applicant is not subject to revocation of certification as per Clause 1.5
iv. The Applicant supplies to the Climate Bonds Standard Secretariat, a copy of the annual Verification Report.

Applicants seeking to maintain Entity Certification must submit the following documents to the Climate Bonds Standard
Board Secretariat on an annual basis:a) A completed Climate Bonds Information Form;b) The annual Verification Report from an Approved Verifier which meets the requirements per Clause E.1.4.).
If the Climate Bonds Standard Board is satisfied that the Applicant is in conformance with the ongoing requirements, then it
will provide a statement confirming the certified status of the Certified Entity.

1.5 Revocation of Agri-Food DCF Entity Certification
Entity Certification will be rescinded at any time where:
a. The Applicant becomes aware that the Certified Entity and/ or the Parent Group no longer conforms with theClimate Bonds Standard and provides a written statement to that effect to the Climate Bonds Standard Secretariat;
orb. 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; orc. The Applicant has breached any contractual obligation towards the Climate Bonds Initiative.

2. Compliance
For the Certified Entity, all of the following requirements must be met:

2.1. Performance
2.1.1. Agri-Food DCF Sourcing Criteria
The Entity must meet all the requirements set out in the Agri-Food DCF Sourcing Criteria on an annual basis
for the duration of the certification (5 years).
2.1.2. Board approval
The Board of the Certified Entity has approved the Agri-Food DCF Sourcing Commitment no earlier than one
year prior to the application for Certification. The Agri-Food DCF Sourcing Commitment states that theCertified Entity will continue to comply with Agri-Food DCF Sourcing until 2050.

2.2. Governance3The following accountability mechanisms are in place to govern the delivery of the Agri-Food DCF Sourcing
Performance.
2.2.1. Board and senior executive responsibility
2.2.1.1. Board mandate
The Board (or equivalent governance body) has a clear mandate to:I.
II.
III.
IV.

Oversee the design of the Agri-Food DCF Sourcing strategy; andApprove the Agri-Food DCF Sourcing strategy; andOversee the execution and monitor progress of the Agri-Food DCF Sourcing strategy; andApprove and monitor any corrective actions required.

2.2.1.2. Senior management responsibility
Senior management has responsibility for execution of the Agri-Food DCF Sourcing Performance, and theresponsible parties have authority and access to resources to ensure execution.

3. Commitments of the Parent Group
3.1. Exclusions
3.1.1. Expansion of fossil fuel activities
If any legal entity within the Parent Group is in the business of exploration or extraction or fossil fuels, oris a utility company generating or supplying power or heat generated from fossil 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.
3.1.2. Deforestation and Conversion of natural ecosystems
The Parent Company has, within the last year, publicly (re)committed that as of 31 Dec 2020, noentity within the Parent Group has or will engage in deforestation or conversion of other naturalecosystems1.

4. Disclosure
4.1. Information to disclose
The Applicant publishes and keeps accessible on their website the information presented in Table E1.
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.

1

According to the definitions set in the Climate Bonds Agri-Food DCF Sourcing Criteria (2024)

4

Table E1: Disclosure requirements for Agri-Food DCF Entity Certification
Relevant clause

Pre-Certification disclosure

Annual disclosure thereafterE.1.1 Applicant
control of theCertified Entity

The name of the Applicant.

Any changes in the relationship between theApplicant and the Certified Entity.

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

E.1.2. Boundaryof the Certified
EntityAll legal entities of the Applicant, noting which areincluded within the boundary of the Certified Entity
and which are not.

Any changes to the boundary of the Certified
Entity.

E.1.3. Obtaining
EntityCertification

Which legal entities form part of the Parent Group, andthe economic activities they practice.

n/a

The assurance provider.
The level of assurance obtained (limited assurance orreasonable assurance).
The professional standard(s) against which theVerification Engagement was performed.
The Approved Verifier’s pre-Certification Verification
Report.

E.1.4
Maintaining Entity
Certification

n/a

The assurance provider.
The level of assurance obtained (limitedassurance or reasonable assurance).
The professional standard(s) against which theVerification Engagement was performed.
The Approved Verifier’s annual Verification
Report.
Any revocation of Certification.

5Relevant clause

Pre-Certification disclosure

Annual disclosure thereafterE.2.1. Agri-Food
DCF Sourcing
Performance

The Agri-Food DCF Sourcing Performance (perClauses E.2.1.1 (Agri-Food DCF Sourcing Criteria)
and E.2.1.2 (Board Approval).

Whether Agri-Food DCF Sourcing
Performance has changed (per Clause
E.2.1), including any changes in materiality(any agri-food commodity with procurement
spend > 1%).

The date the Agri-Food DCF Sourcing Performance
was approved by the Board of the Certified Entity(E.2.1.2)

Relevant clause

Pre-Certification disclosure

Annual disclosure thereafterE.2.2.
Governance- Board andsenior executive
responsibility

The named individual, committee or Board
responsible for the Agri-Food DCF Sourcing
Performance.

Any changes to the named individual,committee, or Board responsible.

The management structure in place for executing theAgri-Food DCF Sourcing Performance.

.

6Relevant clause

Pre-Certification disclosure

Annual disclosure thereafterE.3. Parent
Group
Commitments –Exclusions

Commitment by the Parent Company on behalf of the Parent Statement from the Parent Company
Group to zero future expansion of any of the activities detailed on behalf of the Parent Group that noin Clause C.3.1.1
entity within the Parent Group has
expanded any of the activities
Statement by the Parent Company on behalf of the Parent
detailed in Clause C.3.1 since theGroup that no entity within the Parent Group has expanded
previous Verification Engagement.
any of the activities detailed in Clause
C.3.1.1 since 1 January 2023.
Commitment by the Parent Company on behalf of the Parent Statement by the Parent Company
Group that no entity within the Parent Group will or is planning on behalf of the Parent Group that noto deforest or convert other natural ecosystems as detailed in entity within the Parent Group has
Clause C.3.1.2.
engaged in the deforestation or theconversion of other natural
Statement by the Parent Company on behalf of the Parentecosystems (Clause C.3.1.2) sinceGroup that no entity within the Parent Group has engaged
the previous Verificationin deforestation or the conversion of other naturalEngagement.
ecosystems (Clause C.3.1.2) since 31 December 2020.