SECOND PARTY OPINION

Investor trust depends on SPO.

The market for green finance — spanning green bonds, sustainability-linked bonds, and beyond — has grown at a remarkable pace as the world steps up its response to climate change and the push for a more sustainable economy. But with that growth comes greater scrutiny. Investors are asking harder questions about what truly qualifies as “green,” and issuers are under real pressure to demonstrate transparency and credibility. As an independent body authorized to provide Second Party Opinions (SPO) in green finance, we offer rigorous, evidence-based assessments that issuers and investors alike can rely on.

About this service

A Second Party Opinion (SPO) is an independent assessment issued by a qualified third party, evaluating whether an issuer’s green bond or sustainability-linked bond framework aligns with internationally recognized principles and standards — including the ICMA Green Bond Principles, Social Bond Principles, and Sustainability-Linked Bond Principles. The result is a formal opinion letter that gives both issuers and investors confidence in the integrity of the framework.

What We Offer:
Alignment assessment for green, social, and sustainability bond frameworks
Review of KPI selection and Sustainability Performance Target (SPT) appropriateness for sustainability-linked bonds (SLBs)
Coverage of green loans and sustainability-linked loans
Verification of compliance with domestic and international standards and principles
Issuance of a formal assessment report (opinion letter)

Our Proprietary Evaluation Framework

In addition to evaluations that comply with international and domestic standards (ICMA, METI, the Ministry of the Environment, etc.), we assess the impact of financing use against the more widely recognized SDG goals and targets.

We grasp the logic behind the validity of financing use, and as environmental specialists, provide assessments and insights that are clear and visually accessible.

	Domestic SPO Provider A	Codo Advisory
Evaluation	– Primarily qualitative descriptions, with minimal opinion or assessment which raises questions about objectivity and reliability – Evaluation criteria in the SPO are vague and lack a standard template, heavily dependent on the issuer’s individual circumstances – Lack of consistency makes it difficult to compare across different issuers	– Uses the ACT tool to clearly demonstrate, with logic-based qualitative and quantitative reasoning, why a plan does or doesn’t contribute to sustainability progress – Consistent, comparable reporting aligned with international standards (ICMA) and domestic guidelines (e.g., METI) – Monitoring support: post-issuance SPO conducts a quantitative assessment of whether KPIs were achieved relative to the original plan at issuance
Structure	Mainly text-based, with limited visual elements	Alignment with international goals and standards (SDGs, CDP, etc.)
Target Audience	Mainly large coporations	Usable by organizations ranging from large corporations to SMEs For SMEs, a lower-cost version or industry-specific focused evaluation is available
	Legitimacy of the evaluation is ambiguous	Consistent and well-grounded evaluation

FOR WHO?

Companies considering the issuance of green or sustainability bonds and sustainability-linked loans— across manufacturing, real estate, energy, infrastructure, and local governments

Companies committed to ESG-driven management and looking to strengthen how they communicate with investors

Financial institutions — including banks and securities firms — involved in structuring or managing green loans

IMPACTS

Build Credibility with Investors

An SPO from an independent body provides objective validation of your framework’s green credentials — strengthening your standing with institutional and ESG-focused investors who demand more than self-certification

Protect Against Greenwashing Risk

By verifying alignment with international principles upfront, you significantly reduce the risk of being challenged on the integrity of your green claims — before it becomes a reputational issue

Optimize Your Cost of Funding

Broadening your reach to the ESG investor community opens the door to more competitive financing terms, as demand from values-aligned investors can work in your favor

Sharpen Your ESG Communications

Your SPO becomes a tangible asset — one you can deploy across reports, disclosure documents, and stakeholder conversations as credible, third-party evidence of your commitment

Service Timeline

Week 1-2

Providing of Relevant Documentation

Issuance Framework :

KPIs, SPTs (Sustainability Performance Targets), and the rationale behind them
Base year, base year performance, and the rationale for selecting them
Evaluation methodology (both quantitative and qualitative) for assessing KPI performance
A detailed description of trigger events and the rationale for choosing them
Additional documentation on issuance restrictions to ensure the credibility of the issuance and avoid potential greenwashing (e.g., restrictions on early buyback)
Additional documentation and rationale on penalties in the event the SPTs are not met

All materials used to develop the issuance framework:

Sustainability strategy
The most recent ESG report available before/during the development of the framework
ESG reports from the past 5 years
Transition strategy
GHG emissions report (Scope 1, 2, and 3 — going back up to 5 years where available)
TCFD report, including risk/opportunity analysis and materiality assessment, etc.

Week 3