Climate Bonds Standard & Certification Scheme Guidance to Verifiers and External Reviewers

This guidance document outlines the framework, professional standards, and methodological requirements for Approved Verifiers and External Review Providers conducting certifications under the Climate Bonds Standard v4.2. It details the specific verification processes for Use of Proceeds (UoP), Asset, Entity, and Sustainability-Linked Debt (SLD) certifications, emphasizing independence, science-based criteria, and the role of the Climate Bonds Standard Secretariat in making final certification decisions.

• The Climate Bonds Certification Scheme provides a mechanism for investors and stakeholders to identify low-carbon and climate-resilient investments while avoiding greenwashing. Certification is based on science-based criteria developed by Technical and Industry Working Groups and is overseen by an independent Climate Bonds Standard Board.
• The Certification Scheme covers four primary categories: Use of Proceeds (UoP) debt instruments, which allocate funds to specific eligible projects; Assets, focusing on the environmental credentials of specific projects or portfolios; Non-Financial Entities, based on climate mitigation performance targets; and Sustainability-Linked Debt (SLD) instruments, which are linked to performance targets and Transition Plans.
• Approved Verifiers provide independent opinions on whether an applicant meets the Standard, but they do not make the final certification decision. All certification decisions are made exclusively by the Climate Bonds Standard Secretariat based on the applicant's information and the verification report.
• Use of Proceeds (UoP) certification involves two phases: Pre-Issuance, which assesses the readiness of the Issuer's systems and processes, and Post-Issuance, which verifies the actual allocation of proceeds to eligible projects. Issuers typically have 24 months to complete allocation, though extensions up to ten years may be granted with justification.
• Entity and SLD certifications require a more holistic, forward-looking assessment than UoP or Asset certifications. Verifiers must evaluate the company's overall strategy, business model, governance, and the credibility of Transition Plans and climate mitigation performance targets.
• Approved Verifiers must adhere to strict independence and conflict-of-interest rules. They must be independent from applicants, engage at arm's length, and cannot benefit from the certification process beyond the fee billed for verification services.
• Verification engagements must follow a structured methodology consisting of seven stages: Engagement, Planning, Risk Assessment, Testing and Fieldwork, Evidence Gathering and Documentation, Handling Exceptions and Misstatements, and Reporting.
• Verifiers must use recognized professional standards, specifically ISAE3000 or an equivalent framework like the AA1000 Assurance Standard. They may provide either 'reasonable assurance' (a positive conclusion) or 'limited assurance' (a negative form of expression), both of which are acceptable for certification.
• To maintain Approved Verifier status, firms must meet minimum staffing requirements, employing at least 4 competent verifiers for UoP certifications and 10 for Entity/SLB certifications. They must also maintain professional indemnity insurance covering the relevant jurisdictions.
• The Climate Bonds Standard Secretariat performs ongoing oversight of Approved Verifiers. This includes reviewing all submitted verification reports, monitoring the first few engagements of new verifiers, and requiring updated corporate documents and CVs at least every three years.

APA

Climate Bonds Initiative (2024). Climate Bonds Standard & Certification Scheme Guidance to Verifiers and External Reviewers. https://www.climatebonds.net/files/content-images/Guidance-for-Verifiers-and-External-Reviewers-September2024.pdf

Chicago

Climate Bonds Initiative. Climate Bonds Standard & Certification Scheme Guidance to Verifiers and External Reviewers. 2024. https://www.climatebonds.net/files/content-images/Guidance-for-Verifiers-and-External-Reviewers-September2024.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Climate Bonds Standard & Certification Scheme Guidance to Verifiers and External Reviewers |date=October 2024 |url=https://www.climatebonds.net/files/content-images/Guidance-for-Verifiers-and-External-Reviewers-September2024.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2024climate, author = {{Climate Bonds Initiative}}, title = {{Climate Bonds Standard \& Certification Scheme Guidance to Verifiers and External Reviewers}}, institution = {Climate Bonds Initiative}, year = {2024}, month = oct, url = {https://www.climatebonds.net/files/content-images/Guidance-for-Verifiers-and-External-Reviewers-September2024.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }