ESG Assessment
Overview
ESG Assessment is a framework to disclose to stakeholders the opinion of an external institution about the proceeds from issuance of the financial product subject to the assessment being used for eligible project, process for project evaluation and selection, management of proceeds and reporting level in easily understandable letter grades.
Role
ESG Assessment helps to attract long-term investment to sustainable financial activities or projects by providing the market with the result of assessment on the use and management of financed proceeds. As ESG Assessment examines through follow-up assessment if the financed proceeds are used and managed as initially planned, it also prevents greenwashing.
Subject of Rating
ESG Assessment is performed on any financial product which invests in eligible ESG project regardless of the type of product.
- - Any type of product such as bonds, funds, loans and structured finance products are assessed
- - Method of offering (public offering/private placement) and seniority ranking (senior/subordinated) are not relevant, and mezzanine and stocks are also subject to assessment
Sustainability-Linked Finance is the financial product of which financial/structural features change depending on the level of achievement of the sustainability goal set prior to the issuance of the product. Sustainability-Linked Finance Assessment is a framework to disclose to stakeholders the opinion of an external institution about the KPI and SPT set in the financial product subject to the assessment in assessment grades.
Climate transition finance is the financial product issued to support the targets of carbon-intensive industries to become carbon-neutral in 2050 through transition pathways.
Climate Transition Finance Assessment is a framework to disclose to stakeholders the opinion of an external institution about the eligibility, systematicity, transparency, and environmental materiality in business activities in assessment grades.