Increasingly, investors are looking to create portfolios that accord with international sustainability goals such as The Paris Agreement or UN Sustainable Development Goals (SDGs). The popularity of Green Bonds and similar instruments that align with their ESG commitments is growing significantly and is likely to continue to do so for the foreseeable future. Similar bonds provide an excellent source of funding for large scale projects or processes, enhance the credentials of investors and help achieve national and international goals.
TIAA are delighted to have been able to assist one of its existing clients successfully finance £360m of investment into low carbon housing across the UK. Our client’s first use of proceeds report was issued in May 2023, a year after completing its inaugural Sustainability Benchmark Bond. TIAA provided independent assurance on the allocation and impact reporting of the use of proceeds; providing assurance on the sums reported and the KPIs achieved.
Use of Proceeds Bonds financing new and existing projects and activities are issued in line with the Green Bond Principles (GBP) from the International Capital Market Association (ICMA), which provides guidelines for all forms of such bonds. The bonds issued by our clients are issued and verified by TIAA’s auditors in accordance with ICMA guidelines.
Essentially, we provide assurance that, based on the evidence provided to us, the bond issuer has allocated the resources, and achieved the outcomes that the bond requires. We are often well placed, given our knowledge and experience as internal auditors within the issuer’s business, and are able to provide a cost effective, efficient and effective service.
For further information about the services we can offer please Contact Us.