CHECKLIST FOR SUSTAINABILITY-LINKED DEBT CERTIFICATION

This guide provides a comprehensive checklist for the certification of Sustainability-Linked Debt (SLD) under the Climate Bonds Standard v4.0. It establishes a 90% certification threshold for economic activities, defines two levels of certification (Aligned and Transition), and mandates detailed delivery strategies including Scope 1, 2, and 3 action plans. It also imposes strict Parent Group requirements, including a ban on fossil fuel expansion after 2023 and the protection of high-carbon stock land.

• SLD Certification is restricted to legal entities or segments thereof that provide non-financial goods and services. This definition specifically includes State-Owned Entities (SOEs) engaged in commercial activities and Real Estate Investment Trusts (REITs) that own or operate income-generating real estate, but excludes sovereigns, municipalities, local authorities, and REITs that only hold financial assets like mortgages.
• To obtain certification, an issuer must meet a 'Certification Threshold' where at least 90% of the economic activities linked to the SLD comply with specific performance target, delivery strategy, governance, and disclosure requirements. Compliance is measured by disaggregating activities based on either turnover (revenue) or GHG emissions determined in line with the GHG Protocol.
• The standard offers two levels of certification based on the timing of alignment with Climate Bonds Standard Sector Criteria: Level 1 (“Aligned”) for targets that align at the time of certification, and Level 2 (“Transition”) for targets that align by 31 December 2030.
• A required Delivery Strategy must include a long-term Vision, a Strategic Narrative detailing decarbonisation levers and market assumptions, and specific Action Plans for Scope 1, 2, and 3 emissions. These plans must include interim milestones and metrics annually for the first five years, three-yearly for the next nine, and five-yearly thereafter.
• Certification can be revoked if the issuer breaches contractual obligations, resets performance targets to a lower level of emissions reduction, or if a verification engagement finds the instrument or Parent Group no longer conforms to the Standard.
• Parent Groups must adhere to strict exclusions to maintain certification, including a public commitment to no expansion of fossil fuel exploration, extraction, or power generation after 1 January 2023, and a commitment that no high-carbon stock land has been converted or fragmented since 1 January 2020.

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} }