EIB breaks new ground in the area of Green Bond external review

LUXEMBOURG, 28 September 2016 /PRNewswire Policy/ -- In the latest of a series of milestone innovations, the EIB has posted on its website today a comprehensive statement (“CAB statement”) describing in detail its Green Bond activities in 2015 (management responsibilities, operational criteria, allocation/impact reports). The document is the first of its kind and is subject to an in-depth review by external auditors.

The CAB statement is accompanied by an Independent Reasonable Assurance Report issued by KPMG Luxembourg. This offers a higher degree of assurance and standardization than so far provided by auditors in this area (limited assurance).

The report confers high reliability to the information provided by the EIB and supports the alignment of EIB's Green Bond practice with the Green Bond Principles (“GBP”) of the International Capital Market Association (ICMA).

What's more, KPMG summarizes the features of EIB's Green Bond framework in an “External Review Form” in appendix to its report. This form follows the model referenced in the 2016 update of the GBP with the objective to establish a tool that could help clarify review standards and standardize comparisons among Green Bonds. The form is based on the conclusions of a dedicated GBP working group coordinated by the EIB, and is now inaugurated by KPMG and incorporated in a reasonable assurance report.

In the coming days, ICMA will start publishing in its online GBP Resource Centre of Green Bond information that issuers are invited to contribute on a voluntary basis. The goal is to increase accessibility, transparency and comparability of Green Bonds.

In this context, EIB will be the first to provide this Independent Reasonable Assurance Report prepared according to the International Standards on Assurance Engagements 3000 and including the External Review Form.

Link to CAB statement 2015 and Independent Assurance Report: http://www.eib.org/attachments/fi/cab-statement-2015.pdf

Comments on the initiative:

Eila Kreivi, Director and Head of Capital Markets Department at the EIB, Chair of the Green Bond Principles Executive Committee, said: ”The positive conclusion of KPMG's independent assurance report highlights the trustworthiness of EIB's Green Bond practice. This initiative extends EIB's engagement in favour of transparency and accountability. After focusing on substance and comparability of impact reports, we are now showing the way with regard to disclosure, reliability and standardization. All of this fosters the sustainable growth of the Green Bond market.”

Jane Wilkinson, Partner, KPMG Luxembourg, said: “Any green bond issuer which seeks third party independent assurance on their green bond programme is making a clear statement about how important they consider their contribution to the green bond market. It is critical that green bond investors can be sure about the quality of their investment.”

Robert Scharfe, CEO of the Luxembourg Stock Exchange, said: “As a guarantor of the integrity of the information distributed to the markets, we welcome this initiative. Once again, the EIB is confirming itself as a groundbreaking institution whose commitment is made tangible by its constant efforts to innovate and inspire the highest possible best practice. It is not only the EIB investors but ultimately all of the market that will benefit from this enhanced form of transparency and accountability.”

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SOURCE European Investment Bank