Green Bond Verification

Green bond verification is the independent assessment of the framework that qualifies a debt instrument as green, and of how the proceeds raised are used. The most common output is a second-party opinion (SPO) given before issuance; after issuance, allocation of the proceeds and the impact are verified.

The aim is to give investors an independent assessment that the proceeds are genuinely directed to defined green projects, and to reduce greenwashing risk.

• Companies issuing a green bond or a sustainability bond
• Businesses using a green loan
• Municipalities and public bodies
• Groups seeking sustainability-linked finance
• Issuers reporting to investors

• Comparing the green bond framework against the ICMA Green Bond Principles
• Use of proceeds: definition of eligible project categories
• The project evaluation and selection process
• Management and segregation of the proceeds
• Reporting commitments: the allocation report and the impact report
• Assessment of alignment with the EU Taxonomy (if requested)
• Verifying the allocation of proceeds after issuance
• Examining the calculation method for the declared environmental impact
• Reporting deviations from the framework

• ICMA Green Bond Principles
• ISAE 3000
• EU Green Bond Standard
• Climate Bonds Standard

• ICMA Green Bond Principles
• ISAE 3000
• EU Green Bond Standard
• Climate Bonds Standard

1. 1Engagement Acceptance and ScopeIt is agreed in writing which data will be assessed, against which reporting framework and at what level of assurance.
2. 2Establishing the CriteriaThe reporting framework applied (GRI, ESRS, IFRS S1/S2) and the organisation's own calculation methodology are established as the criteria.
3. 3Risk Assessment and MaterialityIndicators carrying a risk of misstatement are identified; the materiality threshold and the extent of sampling are set accordingly.
4. 4Examination of Internal ControlsThe data collection process, calculation controls and approval mechanisms are examined; traceability of the data back to source is tested.
5. 5Indicator-level TestingFor the selected indicators, recalculation, checking of source documents and analytical procedures are applied.
6. 6Handling of FindingsErrors identified and unsupported disclosures are communicated to the organisation; the report is corrected.
7. 7Assurance StatementAn assurance statement worded in line with the chosen level of assurance is issued and published in the report.

Assurance engagements are carried out at either limited or reasonable assurance level. In practice most sustainability reports are published with limited assurance, while regulation foresees a gradual move to reasonable assurance. The level is stated explicitly in the wording of the statement, and the two levels are not interchangeable.

• Details of the assurance provider and the team
• Indicators covered by the assurance and the period
• Reporting framework applied and the criteria
• Assurance standard applied and the level of assurance
• Summary of the procedures performed
• The division of responsibilities between the organisation and the assurance provider
• The assurance conclusion (statement)
• Disclosures excluded from the scope

A second-party opinion is NOT investment advice or a credit rating and says nothing about the issuer's ability to repay. The opinion assesses the framework's conformity with the relevant principles; it does not commit to the projects' environmental impact being achieved. The pre-issuance opinion and the post-issuance allocation verification are separate exercises; the first does not substitute for the second.

Greenhouse gas verification and validation activities are accredited under ISO 14065; the verification itself is performed to ISO 14064-3 and the competence of verification personnel is defined by ISO 14066. Assurance engagements, by contrast, are governed by assurance standards such as ISAE 3000 and do not fall within accredited certification. In both frameworks the impartiality rule is decisive: the party that performs the calculation cannot verify that same calculation. EUROLAB holds internationally recognised accreditation from accreditation bodies that are signatories to the ILAC and IAF mutual recognition arrangements; which verifications can be offered within accredited scope is confirmed in writing at the quotation stage.

• ESG Data Assurance
• Sustainability Report Assurance
• CBAM/SKDM
• Renewable Energy