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Centre for International Climate and Environmental Research in Oslo (CICERO)

CICERO Second Opinions on Green Bond Investment Frameworks

Burgess COMMENTARY

Peter Burgess

CICERO Second Opinions on Green Bond Investment Frameworks

As an independent, not-for-profit research institute, CICERO (Center for International Climate and Environmental Research - Oslo) provides second opinions on institutions' frameworks for selecting eligible projects for green bond investments, and assesses the framework’s robustness in meeting the institutions’ environmental objectives.

Through a mandate from Skandinaviska Enskilda Banken (SEB), CICERO is working together with SEB to develop a framework for an open platform for independent review of investment frameworks. CICERO launches Expert Network on Second Opinions (ENSO) CICERO initiates a global alliance of academic institutions to support the financial sector’s increased awareness of climate impact. What is a CICERO Second Opinion? CICERO Second Opinions are independent, research-based evaluations of green bond investment frameworks to determine their robustness in meeting the institutions’ environmental objectives. The second opinion is based on documentation of rules and frameworks provided by the institutions themselves (the client) and information gathered during meetings, tele-conferences and e-mail correspondence with the client.

CICERO provides recommendations for improving the likelihood of the investment framework to meet its environmental goals.

These second opinions are normally restricted to an evaluation of the mechanisms or framework for selecting eligible projects at a general or overall level. CICERO does not validate or certify the climate effects of single projects, and, thus, has no conflict of interest in regard to single projects.

CICERO is neither responsible for how the framework or mechanisms are implemented and followed up by the institutions, nor for the outcome of investments in eligible projects.

Who uses CICERO’s Second Opinions?

CICERO has issued Second Opinions on the investment frameworks for green bonds issued by development banks, export import banks, and municipalities. The world's first corporate green bond was recently issued with a Second Opinion from CICERO.

What is the financial community saying about CICERO Second Opinions?

“What’s considered green is different for everyone. Our investors need to be comfortable…reaching out to Cicero is a great first step.” -Stephen Liberatore, Managing Director at pension provider TIAA-Cref

“On behalf of our investors, we ask for a second opinion from an environmental specialist called CICERO…we wanted to be sure that the right questions were asked...we also wanted to make sure that the independence of the group that was raising the questions was secure.” -Christopher Flensborg, Head of Sustainable Products and Product Development, SEB

“The good news is that co-manager SEB‘s style has been to use CICERO – the highly reputable Centre for International Climate and Environmental Research in Oslo – to vet criteria for projects to be funded by Green Bonds they’re involved in bookrunning.” -Sean Kidney, CEO, Climate Bonds Initiative Research on Climate finance and green bonds How can we ensure the environmental integrity of green finance? What can governments do to mobilise private climate finance? What is the potential for green bonds to support climate action? How can finance be incorporated in the UNFCCC negotiations?

For further information:

Contact Christa Clapp Email: christa.clapp@cicero.oslo.no Phone: +47 22 85 85 28 Centre for International Climate and Environmental Research in Oslo (CICERO), a group of Norwegian academics