Yamamoto Takenari (山本 武成), president of S&P Global Ratings Japan, discussed efforts to enhance transparency and credibility in the sustainable finance market through SPOs for green bonds and other instruments.
Under an independent credit-rating framework with effective governance, S&P provides second-party opinions (SPOs) assessing whether green bonds, social bonds and other instruments comply with international principles and guidelines. It works to enhance transparency and credibility for both investors and issuers.
A key feature of its SPOs is the evaluation of the underlying economic activities from the perspectives of low carbon emissions and climate-change adaptation using six colour-coded Shades of Green categories. The visual presentation is intended to encourage dialogue between investors and issuers.
In addition to pre-issuance SPOs, the company offers a range of assessment services, including post-issuance reviews (PIRs) to verify how the funds were used and climate transition assessments (CTAs) evaluating a company's transition as a whole.
Looking ahead, the company aims to become a global leader in SPOs, as it is in credit ratings, and has set the goal of securing the world's leading market share.