CHECKLIST FOR ENTITY CERTIFICATION

The 'Checklist for Entity Certification' is a guide accompanying the Climate Bonds Standard v4.0, detailing the requirements for non-financial entities to achieve and maintain certification based on their climate mitigation performance, transition strategies, and governance.

• Entity Certification is currently restricted to non-financial entities or specific segregated segments of them for which the Climate Bonds Initiative has established Sector Criteria.
• To obtain certification, an entity must meet a 'Certification Threshold' where more than 90% of its total economic activities comply with climate performance, delivery strategy, governance, and disclosure requirements.
• The 90% certification threshold is calculated by disaggregating operations based on either historical turnover (revenue) or GHG emissions determined according to the GHG Protocol.
• Two levels of certification are available: Level 1 ('Aligned'), where targets align with Sector Criteria at the time of certification, and Level 2 ('Transition'), where targets align by 2030 at the latest.
• A required Transition Plan must include a 'Vision' of future activities and a 'Strategic Narrative' that details decarbonisation levers, market trends, and risks, broken down into 3-yearly intervals to 2035 and 5-yearly thereafter until 2050 or net zero.
• The Delivery Strategy must include specific Action Plans for Scope 1 and 2 emissions, and Scope 3 emissions (if applicable), as well as a Finance Plan detailing CapEx, OpEx, and funding sources.
• Governance requirements mandate that the Board must have a clear mandate to oversee and approve Climate Mitigation Performance Targets and the Delivery Strategy, and a named executive must have explicit responsibility for the climate response.
• Parent Groups must adhere to specific exclusions, including a public commitment to no expansion of fossil fuel exploration, extraction, or power generation from fossil fuels after 1 January 2023.
• Parent Groups must commit that as of 1 January 2020, no entity within the group has converted or unsustainably intensified operations on high-carbon stock land, such as wetlands or continuously forested areas.
• Parent Companies 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 they constitute 40% or more of total emissions.

APA

Climate Bonds Initiative (2023). CHECKLIST FOR ENTITY CERTIFICATION. https://www.climatebonds.net/files/documents/Entity-Certification-Checklist.pdf

Chicago

Climate Bonds Initiative. CHECKLIST FOR ENTITY CERTIFICATION. 2023. https://www.climatebonds.net/files/documents/Entity-Certification-Checklist.pdf.

Wikipedia

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

BibTeX

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