This report does not constitute a rating action.
Key Takeaways
- Since we published our Shades of Green-integrated analytical approach for Second Party Opinions (SPOs) in 2023, we produced 227 SPOs by year-end 2024; among them, 38 were sustainability-linked SPOs. We also have more than 535 SPOs using the previous approach.
- Green SPOs still dominate the financing frameworks we reviewed, in line with sustainable debt issuance volumes.
- We have published five Climate Transition Assessments (CTAs), leveraging our Shades of Green approach, since we launched this sustainability product in July 2024.
Our latest Sustainable Finance Spotlight report is available on spglobal.com
The breakdown of our SPOs broadly aligns with sustainable bond issuance
- Energy, green buildings, clean transportation and energy efficiency are the most frequent project categories we analyze.
- Not all green bond projects support climate mitigation or adaptation as their main objectives, however.
- Our Shades of Green approach also allows us to analyze projects supporting biodiversity restoration or conservation, for example.
SPO distribution by type, region, and sector | |
---|---|
Green SPOs lead by financing type and Europe, the Middle East, and Africa (EMEA) leading by region. | We assessed more than two-thirds of our 227 green SPOs as Dark green or Medium green. |
North America is well represented among social and sustainability SPOs, mainly reflecting the financing of housing and essential services projects. | Dark green or Medium green shades were frequently attributed to renewable energy, clean transportation, and climate adaptation. |
In Asia-Pacific (APAC), most of our SPOs were on green and sustainability-linked financing. | There was a large representation of Light green and Medium green shades in the green buildings category. |
We also provide EU Taxonomy assessments for green bond issuers
- The EU Taxonomy is a comprehensive classification system introduced by EU regulation. It aims to align economic activities with a net-zero trajectory by 2050 and with broader environmental objectives.
- Activities aligned with the EU Taxonomy must show a substantial contribution to an EU objective, do no significant harm (DNSH) to other objectives, and incorporate minimum safeguards. The first two are defined by the TSC (technical screening criteria) of the six environmental EU objectives that currently cover more than 150 economic activities.
- The EU Taxonomy is key to the European Green Bond Regulation, since it requires that at least 85% of the funds raised through a European green bond be allocated to economic activities aligned with the EU Taxonomy.
- All EU Taxonomy-aligned projects we have reviewed were assigned a shade of green.
In the Sustainable Finance Spotlight report, more than 40 examples illustrate our analytical approach
- Our spotlight report showcases 30 green project categories and six social project categories along with three EU Taxonomy assessments, in addition to three Climate Transition Assessments
- As low- and lower-middle income countries continue to look to sustainable debt markets to finance development and climate objectives, our holistic jurisdiction analysis takes account of local aspects.
Table 1
Green projects shown as examples in the Sustainable Finance Spotlight report | |||||
---|---|---|---|---|---|
Sector | Light green | Medium to Light green | Medium green | Dark to Medium green | Dark green |
Agriculture | SalMar | Rwanda§ | Cinis Fertilizer | ||
Biodiversity | Togo*§ | Qingdao Conson Development | Dominican Republic | ||
Clean transportation | Xunta de Galicia | Volvo Group | |||
Climate change adaptation | Rwanda§ | Fastpartner | |||
Energy | Rwanda*§ | Oglethorpe Power Corp | Altech Batteries | ||
Energy efficiency | Reykjavik Energy | IREIT | |||
Green buildings | California Housing Finance Agency | Platzer | |||
Pollution prevention and control | A2A | Togo§ | Agilyx | ||
Sustainable water | Banco Interamericano de Finanzas | Rwanda§ | Huai’an Investment Holdings |
*Example in the Jurisdiction Analysis section. **Example in the EU Taxonomy section. §Projects carried out in a low- or middle-income country.
Our analysis of social projects shows activities in both developed and developing markets
- Asia-Pacific (APAC) and the Americas feature more prominently in social and sustainability financing than in green financing.
- The definitions of the social objective and target population are key, and these often depend on the local context.
- Social and affordable housing projects are the most common social project categories.
Table 2
Social projects shown as examples in the Sustainable Finance Spotlight report | |||
---|---|---|---|
Project categories | Americas | Europe, the Middle East, and Africa | Asia-Pacific |
Social projects (various types) | Bogota Distrito Capital (Access to essential services) | FirstRand | Philippine National Bank (PNB) (Affordable basic infrastructure) |
Social housing projects | The City of New York | Korea Land & Housing Corp. |
Our Climate Transition Assessments show a range of future shades and time horizons
- We have assigned Dark green future shades to companies whose role is solely to support the transition in the energy and automotive sectors.
- In the real estate sector, strategies that consider value-chain emissions can better support the transition to a low-carbon future.
- The time horizon we select matches the company’s planned transition changes, considering implementation actions and risks.
- So far, we have only publicly released CTAs with a green future shade, although our assessment covers all shades as potential outcomes.
Table 3
Climate Transition Assessments | |||||
---|---|---|---|---|---|
Company | Sector | Country | Green Equity Designation | Future Shade | Time horizon |
Primrock | Energy services | Sweden | Nasdaq | Dark green | Foreseeable future |
DST Electric Vehicle Rental (Shenzhen) Co. | Automotive | China | N/A | Dark green | Foreseeable future |
Fabege | Real estate | Sweden | Nasdaq | Medium green | 2030 |
Kempower Oyj | Energy | Finland | Nasdaq | Dark green | Foreseeable future |
PSP Swiss Property | Real estate | Switzerland | N/A | Light green | 2035 |
Period September-December 2024.
Related Research
- Our public SPO reports can be found on spglobal.com/ratings
- Sustainable Finance Spotlight: Climate Transition Assessments And Second Party Opinions, March 25, 2025
- Analytical Approach: Second Party Opinions, Mar. 6, 2025
- Sustainable Finance Newsletter Q4 2024, Mar. 5, 2025
- Sustainability Insights: Global Sustainable Bond Issuance To Hold Steady At $1 Trillion In 2025, Feb. 5, 2025
- Sustainability Insights Research: Decarbonizing European Real Estate Won't Be Easy, Jan. 20, 2025
- S&P Global's Top 10 Sustainability Trends to Watch in 2025, Jan. 15, 2025
- Sustainability Insights: Second Party Opinions Show A Rising Tide Of Blue Finance, Oct. 31, 2024
- No Quick Fix For The U.S. Affordable Housing Shortage, Aug. 21, 2024
- Analytical Approach: Climate Transition Assessments, July 18, 2024
- Sustainable Finance FAQ: How S&P Global Ratings Supports Credibility And Transparency In Transition Financing, July 2, 2024
- Analytical Approach: Shades Of Green Assessments, Jul. 27, 2023
Primary Contacts: | Patrice Cochelin, Paris 33144207325; patrice.cochelin@spglobal.com |
Victor H Laudisio, Sao Paulo 55-1130394834; victor.laudisio@spglobal.com | |
Tim Axtmann, Oslo ; tim.axtmann@spglobal.com | |
Catherine Baddeley, London 44-2071760459; catherine.baddeley@spglobal.com | |
Luis Solis, Madrid 34-914233218; luis.solis@spglobal.com | |
Maria Ortiz De Mendivil, Madrid 34-914233217; maria.omendivil@spglobal.com | |
Maria Knudsen, Oslo ; maria.knudsen@spglobal.com | |
Maxime Chul, Paris 33-144207216; maxime.chul@spglobal.com | |
Erin Boeke Burke, New York 1-212-438-1515; Erin.Boeke-Burke@spglobal.com | |
Catherine Rothacker, Oslo ; catherine.rothacker@spglobal.com | |
Alan Bonilla, San Francisco 1-415-371-5021; alan.bonilla@spglobal.com | |
Carina Waag, Oslo ; carina.waag@spglobal.com | |
Irina Velieva, Stockholm 7-49-5783-4071; irina.velieva@spglobal.com | |
Jesus Palacios, Washington DC 52-55-5081-2872; jesus.palacios@spglobal.com | |
BRUNO MASSINGA, London 44-20-7176-0019; bruno.massinga@spglobal.com |
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