What is ISO 14030‑4 about?
ISO 14030‑4 is a fourth part of the multi-series on green debt instruments. ISO 14030‑4 focuses on the verification of projects as green projects. ISO 14030‑4 specifies requirements for verification bodies performing verification of claims of conformity or a suitable substitute taxonomy.
Conformity to the requirements of ISO 14030‑4 is mandatory for the verification of statements made by green debt issuers, borrowers, and lenders that claim that their products conform. ISO 14030‑4 specifies requirements for the validation of claims of eligibility made in conformity and establishes requirements for the optional use of third-party marks of conformity.
Who is ISO 14030‑4 for?
ISO 14030‑4 on environmental performance evaluation is useful for:
- Regulatory bodies that verify project eligibility
- Environmental consultants and specialists
- Banks / Financial institutions
Why should you use ISO 14030‑4?
Green debt financing has become an important tool to provide funding to meet growing environmental challenges. For financial and other institutions which offer loans, the designation as “green” can be used to finance projects, assets, and supporting expenditures that result in potential environmental benefits. Regulatory bodies need clear criteria to verify projects as green projects in the face of greenwashing. ISO 14030‑4 becomes vital to prevent misleading marketing for projects.
ISO 14030‑4 provides the performance of a pre-issuance verification engagement when debt instruments (bonds or loans) are to be issued or originated with a claim of conformity to the ISO 14030 series. It also requires the performance of a post-issuance verification engagement, whose purpose is to assure intended users that the requirements are met. As the authority that verifies whether a project meets the criteria to be categorized as a green project, ISO 14030‑4 becomes a vital tool for you.