SITAWI contributes to the development of global ISO standard for green bonds

Nominated by the Brazilian Association of Technical Standards (ABNT), SITAWI’s Director of Sustainable Finance, Gustavo Pimentel, will be a part of the international expert group charged with developing ISO 14030, which aims to standardize the requirements for the classification of a green bond. Two other Brazilian organizations, FEBRABAN and the consulting firm Sust4in, will also be a part of this group.

The new standard of the ISO 14000 series, which sets guidelines on the area of environmental management, will harmonize the multiple definitions of green bonds. Some of the points to be defined are: eligibility, use and management of proceeds, and reporting requirements.

Currently, SITAWI is leading the Brazilian group of experts whose mission is to consolidate a national feedback based on existing standards and guidelines. A draft standard and key discussion points will be taken to the meeting held by ISO in Paris in December 18-20.

According to SITAWI’s Sustainable Finance consultant Carla Schuchmann, the process of developing a standard is long, and ISO 14030 is expected to be finalized in 2020. A number of expert meetings will be held until a final version that contemplates international regulation is achieved.

Green bonds were created to fund projects and assets that have environmental and/or climate-related benefits. The Brazilian green bond market has already exceeded US$ 3.6 billion issued by domestic companies. So far, SITAWI is the only Brazilian organization that has assessed green bonds in the country. In addition, we are a pioneer in social and environmental research and coordinate the Green Bonds Working Group of the Laboratory of Financial Innovation, an initiative of the Inter-American Development Bank (IDB), the Brazilian Securities and Exchange Commission (CVM) and the Brazilian Development Association (ABDE).