What is the Social Green sustainability bonds database and how can it help you?

ICMA is engaged with the process of tracing sustainability, social, and green bonds that were issued from the year 2016. Starting from February 2021, they started tracking sustainability related bonds as well. You will be able to take a look at all these initiatives. That has to be done through the Social Green sustainability bonds database. This database is currently available to the public. Hence, any interested person will be able to gain access to the Social Green sustainability bonds database and go through entries included in it.

What can you find in the Social Green sustainability bonds database?

Inside the Social Green sustainability bonds database, you will be able to discover information with related to all the issuers, who have publicly made available the external review reports. Even the entities that have completed relevant forms and templates are visible through the Social Green sustainability bonds database. To get into the database, everything should be completed according to the principal recommendations. If that is available, getting into the database will never be a difficult thing to do.

According to information with related to financial features of issuance or the impact reports, it is important to go through the Social Green sustainability bonds database and make sure that information is available in it. All information required will be available within the database.

There are tabs in the database, which is providing all the users with access to the views that they want to see. For example, a user who wants to see the list of entries by the country can go through it. Or else, it is even possible to get the entries indexed according to the alphabetical order. You will also be able to do advanced search on the database, which will provide you the opportunity to get hold of information you want with minimum hassle. For example, you will be able to refine the search and locate based on category, country, issuer, or the external review provider. Or else, it is possible for you to go through the fast-track search and locate the issuer.

You can see how the Social Green sustainability bonds database is reproducing the category. They include the different categories, including social, green, or sustainability. You will also be able to find a separate category named sustainability linked. Based on that, it is possible for you to get a better understanding about the issuer, without having to go through any requalification.

It is also important to keep in mind that the Social Green sustainability bonds database is not usually updated in real time. It is only updated regularly. The frequency of database update would vary depending on the way how information is collected or transmitted. All the external review producers and issuers should verify the references, including the links, and make sure that everything is clearly up to date.

How does an entity gets listed in the Social Green sustainability bonds database?

Now you have a good understanding on what the Social Green sustainability bonds database is all about. While keeping that in mind, you should also figure out how an entity is getting listed in the Social Green sustainability bonds database as well. There are four main steps on how this database is getting updated. Let’s take a quick look at those steps.

Identifying the green bond

The very first step of updating an entry on the Social Green sustainability bonds database will be identifying the green bond. This is where the experts will analyze and confirm whether the bond is environmentally beneficial or not. If that is environmentally beneficial, it will be labelled accordingly as green. Green is the common label that is given to these labels. You will also be able to see how many other labels are provided along with this main label. They are determined based on the outcome of the bond assessment.

Screening green projects

The second step is about screening the green projects or the assets. Along with that, it is checked whether the green bond adheres to the climate bonds taxonomy or not. Every single bond will be reviewed based on this basis. This will be a detailed review. In here, secured, and unsecured bonds are both considered. The main objective of this analysis is to make sure that the bond is green.

Evaluating the bond to be used with proceeds

The third step is where the bond is being evaluated to be used along with the proceeds. For this phase, bonds that have at least 95% of proceeds will be taken into consideration. All of them should align and match perfectly well along with the climate bonds taxonomy as well. If over 5% of the proceeds are being used for general corporate purposes, social projects, or working capital, the project will not align with the climate bond taxonomy. As a result, the bond will be excluded. It is important for the evaluators to have access to sufficient information during this process. This is where they would determine the results associated with the exclusion.

If there aren’t enough information available with the issue, CBI will go ahead and attempt to obtain further information with related to it from the parties who are associated with the deal. Then the deal will be considered as pending. If that is concluded as unsatisfactory, or if additional information is not available, the deal will be excluded from the quarter as well.

Ongoing updates

Ongoing updates will be taking place on the Social Green sustainability bonds database along with time. This is where information with related to the current bonds are being updated as well.

Final words

As you can see, the Social Green sustainability bonds database is a perfect free to use and public database, which you can use to gather information with related to green bonds. It provides all the important information as a reliable database.