At PKF Attest, we are pleased to announce two significant milestones that consolidate our commitment to sustainable finance and transparency in financial markets from our ESG area. We reinforce our commitment to sustainable finance through ESMA accreditation and adherence to the ICMA (International Capital Market Association) Principles .
On ESMA's list of accredited European Green Bond External Reviewers
PKF Attest has recently been accredited by the European Securities and Markets Authority (ESMA) as an external reviewer of European Green Bonds (EuGB). This accreditation authorizes us to perform independent reviews in accordance with Regulation (EU) 2023/2631. As an accredited entity, we will be able to issue pre-review opinions in accordance with Annex III of the EuGB Regulation, thus contributing to the integrity of the green bond market in Europe.
What are European Green Bonds?
European green bonds are financial instruments designed to finance sustainable projects with a positive environmental impact, such as renewable energies, energy efficiency or biodiversity protection.
They must comply with the Green Bond Principles (GBP) and align with the EU Taxonomy, which defines which activities can be considered green. In addition, transparency, regular reporting, and that projects do not harm other environmental and social objectives are required (DNSH principle).
They are a key tool for driving the ecological transition in Europe under a clear and reliable regulatory framework.
Transparent methodology aligned with EU regulations
We apply a clear methodology that complies with current European Union regulations. Our process includes three distinct evaluation phases:
> Pre-issuance assessment and review. Prior to the issuance of a green bond, we conduct a thorough analysis of the issuer's framework, meeting with key stakeholders involved in its structure, project selection and definition of ESG objectives. This assessment includes reviewing regulatory and marketing documents, verifying internal controls and checking compliance with EU taxonomy and applicable regulations.
> Post-issuance analysis, focused on reviewing the allocation of funds raised; annually, we conduct a review to ensure that the allocation of funds remains aligned with the issuer's initial commitments. We assess the quality of project monitoring, reporting and consistency with EU taxonomy and applicable regulations through interviews and documentary analysis.
> Impact assessment, aimed at quantifying environmental benefits. We verify that the use of green bond proceeds is aligned with at least 85% of the EU taxonomy, assessing each project against the six environmental objectives. In addition, we review issuer documentation, validate compliance with EU social safeguards and confirm that funds are allocated exclusively to eligible green projects.
Each of these reviews is conducted at a specific point in the life cycle of the bond and the results are published transparently on our website, using a proprietary format designed for ease of understanding and comparison.
Adhering to the ICMA Principles: Committed to Sustainable Finance
We have also formalized our adherence to the Sustainable Finance Principles of the International Capital Market Association (ICMA), including the Green Bond Principles, Social Bond Principles and Sustainability-Linked Bond Principles. These principles are the international standard of reference to ensure integrity, transparency and credibility in the issuance of green and sustainability-linked bonds. Our adherence to them reinforces our commitment to international frameworks that promote integrity and transparency in the sustainable finance market.
What are the ICMA Principles?
> Clear use of revenues: Funds should be used exclusively for projects with environmental benefits, such as renewable energy, energy efficiency or clean transportation.
> Project evaluation and selection: A transparent and defined process for choosing funded projects aligned with sustainability objectives is required.
> Revenue management: The resources obtained are managed in a separate and traceable manner, ensuring their correct allocation.
> Reporting and transparency: Periodic reports should be issued detailing the use of funds and the environmental impacts achieved.
In line with these principles, at PKF Attest we offer second opinion reporting (SPO) services for bonds, loans and green, social and sustainability-linked financing frameworks, helping our clients to align their financial instruments with market best practices.
These initiatives reflect our ongoing commitment to sustainability and our aim to support issuers and investors in the transition to a greener and more responsible economy.
