New handbook by ICMA on issuer climate transition disclosures....

The International Capital Markets Association (ICMA) released guidance--the Climate Transition Finance Handbook--for capital markets participants "on the practices, actions and disclosures to be made available when raising funds in debt markets for climate transition-related purposes."  

The new handbook describes information that should be made publicly available to investors in connection with the issuance of "use of proceeds" bonds aligned with the Green and Social Bond Principles or Sustainability Bond Guidelines, or general corporate purpose bonds issued in line with the Sustainability-Linked Bond Principles.

This is the result of work by the Climate Transition Finance Working Group, comprised of more than 80 entities participating in the capital markets, under the auspices of the Green and Social Bond Principles Executive Committee.  The recommendations have four key elements: (1) issuer's climate transition strategy and governance; (2) business model environmental materiality; (3) climate transition strategy to be "science-based" including targets and pathways; and (3) implementation transparency.

Definitely worth a read by those involved in the fast-growing sustainable finance market.