CHECKLIST FOR SUSTAINABILITY-LINKED DEBT CERTIFICATION

The checklist specifies the requirements for legal entities to obtain and maintain Sustainability-Linked Debt (SLD) certification. It outlines eligibility criteria, the 90% certification threshold for economic activities, and the necessity of a comprehensive Transition Plan including a vision, strategic narrative, and finance plan. It also mandates governance structures, parent group commitments to net zero and the cessation of fossil fuel expansion, and strict public disclosure requirements.

• To obtain SLD certification, at least 90% of the economic activities linked to the debt instrument must comply with specific Climate Mitigation Performance Target, Delivery Strategy, Governance, and Disclosure requirements. This 'Certification Threshold' is determined by disaggregating activities by either turnover (revenue) or GHG emissions.
• Certification is available at two levels based on the timing of alignment with Climate Bonds Standard Sector Criteria: Level 1 ('Aligned') for those aligned at the time of certification, and Level 2 ('Transition') for those that align by 31 December 2030.
• A mandatory Transition Plan must include a long-term Vision, a Strategic Narrative detailing decarbonisation levers and timelines (in 3-yearly intervals to 2035, then 5-yearly), and a Finance Plan that addresses CapEx, OpEx, and funding sources.
• The Parent Group must commit to no expansion of fossil fuel activities—including exploration, extraction, and natural gas production—after 1 January 2023, and must commit to not converting high-carbon stock land after 1 January 2020.
• Parent Groups are required to have a public net zero emissions commitment covering at least 95% of group-wide scope 1 and 2 emissions, and at least 90% of scope 3 emissions if those emissions constitute 40% or more of total emissions.
• Certification can be revoked if the Issuer resets Climate Mitigation Performance Targets to a lower level (representing smaller emissions reductions) than those in place at the time of certification, or if the Issuer breaches contractual obligations to the Climate Bonds Initiative.

APA

Climate Bonds Initiative (2023). CHECKLIST FOR SUSTAINABILITY-LINKED DEBT CERTIFICATION. https://www.climatebonds.net/files/documents/CBSv4_0-SLD-Certification-Checklist.pdf

Chicago

Climate Bonds Initiative. CHECKLIST FOR SUSTAINABILITY-LINKED DEBT CERTIFICATION. 2023. https://www.climatebonds.net/files/documents/CBSv4_0-SLD-Certification-Checklist.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=CHECKLIST FOR SUSTAINABILITY-LINKED DEBT CERTIFICATION |date=April 2023 |url=https://www.climatebonds.net/files/documents/CBSv4_0-SLD-Certification-Checklist.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023checklist, author = {{Climate Bonds Initiative}}, title = {{CHECKLIST FOR SUSTAINABILITY-LINKED DEBT CERTIFICATION}}, institution = {Climate Bonds Initiative}, year = {2023}, month = apr, url = {https://www.climatebonds.net/files/documents/CBSv4_0-SLD-Certification-Checklist.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }