Sustainability-linked Debt Certification

Certification for Sustainability-Linked Debt

Sustainability-Linked Debt (SLD) Certification verifies that SLD instruments align with climate goals through key performance indicators (KPIs) tied to future sustainability outcomes. Certification highlights the ambition and credibility of corporate transition plans and the green credentials of the debt instrument. 

What can be certified? 

SLD instruments where KPIs are linked to: 

• Activities with emissions already at or near zero, or
• Activities with emissions significantly above net-zero but supported by targets and plans aligned with 1.5°C pathways. 

Who can apply? 

• Corporate issuers of SLDs, as with Entity Certification, where proceeds are used for general operating expenses. 

Certification process 

SLD Certification offers two levels: 

1. Level 1: Issuers already aligned with 1.5°C pathways.
2. Level 2: Issuers with transition plans predicting alignment with 1.5°C pathways by 2030. 

Key requirements 

Certification relies on: 

• Performance Targets: Measurable and aligned with the 1.5°C pathway.
• Transition Plans: Clear strategies to achieve these targets.
• Governance Structures: Robust systems to ensure the delivery of performance targets. 

The Certification label validates the green credentials of the SLD instrument and the ambition of the issuer’s transition plan. Certification is valid for the term of the debt instrument, with annual external verification required by a Climate Bonds Approved Verifier. 

Application Requirements 

Applicants must submit the following documents to certification@climatebonds.net: 

1. Information Form
2. Signed Certification Agreement
3. Verification Report, including the relevant checklist.