Assessment score of the compliance of issues of green debt obligations with ICMA and LMA principles

Assessment score of the compliance of issues of green debt obligations with ICMA and LMA principles is a symbolic indicator that reflects ACRA’s independent and subjective opinion, acting as a third-party organization, about the level of compliance of a particular debt instrument with ICMA1 and LMA2 principles. ACRA’s subjective opinion is based on the results of an independent assessment provided for by these principles.

The assigned assessment score is not a credit rating or its component.

Table 1. Assessment score of the compliance of issues of green debt obligations with ICMA and LMA principles

Compliance with ICMA and LMA principles

Final assessment score

Definition

Yes

GR1

In ACRA’s opinion, the proceeds from the issuance of green debt obligations are very highly likely to be allocated to implementation of environmental projects. The issuer’s approaches to selecting projects and managing the funds raised are in line with best global practices. The issuer is willing to provide, not less than once a year (or with a maximum possible frequency of reporting periods), as detailed reports as possible on the use of funds and the environmental effect of projects.

GR2

In ACRA’s opinion, the proceeds from the issuance of green debt obligations are highly likely to be allocated to implementation of environmental projects. The issuer’s approaches to selecting projects and managing the funds raised are close to best global practices. The issuer is willing to provide, not less than once a year, sufficiently detailed reports on the use of funds and the environmental effect of projects.

GR3

In ACRA’s opinion, the proceeds from the issuance of green debt obligations are fairly likely to be allocated to implementation of environmental projects. The issuer’s approaches to selecting projects and managing the funds raised are on a fair level compared to best global practices. The issuer is willing to provide on a regular basis informative reports on the use of funds and the environmental effect of projects.

No

GR4

In ACRA’s opinion, the proceeds from the issuance of green debt obligations are unlikely to be allocated to implementation of environmental projects. The issuer’s approaches to selecting projects and managing the funds raised lag behind best global practices. The issuer is willing to provide reports on a regular basis only containing general information about the use of funds and the environmental effect of projects.

GR5

In ACRA’s opinion, the proceeds from the issuance of green debt obligations are very unlikely to be allocated to implementation of environmental projects. The issuer’s approaches to selecting projects and managing the funds raised are not in line with best global practices. The issuer is not willing to provide reports on a regular basis on the use of funds and the environmental effect of projects.

Source: ACRA

Assessment score of the compliance of social debt obligations and sustainable development debt obligations with SBP, SGP and SLLP principles

Assessment score of the compliance of issues of social debt obligations and sustainable development debt obligations with SBP principles or SGP and SLLP principles is a symbolic indicator that reflects ACRA’s independent and subjective opinion, acting as a third-party organization, about the level of compliance of a particular debt instrument with SBP3 principles or SGP4 and SLLP5principles.

ACRA’s subjective opinion is based on the results of an independent assessment provided for by these principles.

The assigned assessment score is not a credit rating or its component.

Table 2. Assessment score of the compliance of social debt obligations with SBP

Compliance with SBP

Final assessment score

Definition

Yes

SR1

In ACRA’s opinion, the proceeds from the issuance of social debt obligations are very highly likely to be allocated to implementation of social projects. The issuer’s approaches to selecting projects and managing the funds raised are in line with best global practices. The issuer is willing to provide, not less than once a year (or with a maximum possible frequency of reporting periods), as detailed reports as possible on the use of funds and the social effect of projects.

SR2

In ACRA’s opinion, the proceeds from the issuance of social debt obligations are highly likely to be allocated to implementation of social projects. The issuer’s approaches to selecting projects and managing the funds raised are close to best global practices. The issuer is willing to provide, not less than once a year, sufficiently detailed reports on the use of funds and the social effect of projects.

SR3

In ACRA’s opinion, the proceeds from the issuance of social debt obligations are fairly likely to be allocated to implementation of social projects. The issuer’s approaches to selecting projects and managing the funds raised are on a fair level compared to best global practices. The issuer is willing to provide on a regular basis informative reports on the use of funds and the social effect of projects.

No

SR4

In ACRA’s opinion, the proceeds from the issuance of social debt obligations are unlikely to be allocated to implementation of social projects. The issuer’s approaches to selecting projects and managing the funds raised lag behind best global practices. The issuer is willing to provide reports on a regular basis only containing general information about the use of funds and the social effect of projects.

SR5

In ACRA’s opinion, the proceeds from the issuance of social debt obligations are very unlikely to be allocated to implementation of social projects. The issuer’s approaches to selecting projects and managing the funds raised are not in line with best global practices. The issuer is not willing to provide reports on a regular basis on the use of funds and the social effect of projects.

Source: ACRA

Table 3. Assessment score of the compliance of sustainable development debt obligations with SBG and SLLP

Compliance with SBG and SLLP

Final assessment score

Definition

Yes

SDR1

In ACRA’s opinion, the proceeds from the issuance of sustainable development debt obligations are very highly likely to be allocated to implementation of sustainable development projects. The issuer’s approaches to selecting projects and managing the funds raised are in line with best global practices. The issuer is willing to provide, not less than once a year (or with a maximum possible frequency of reporting periods), as detailed reports as possible on the use of funds and the sustainable development effect of projects.

SDR2

In ACRA’s opinion, the proceeds from the issuance of sustainable development debt obligations are highly likely to be allocated to implementation of sustainable development projects. The issuer’s approaches to selecting projects and managing the funds raised are close to best global practices. The issuer is willing to provide, not less than once a year, sufficiently detailed reports on the use of funds and the sustainable development effect of projects.

SDR3

In ACRA’s opinion, the proceeds from the issuance of sustainable development debt obligations are fairly likely to be allocated to implementation of sustainable development projects. The issuer’s approaches to selecting projects and managing the funds raised are on a fair level compared to best global practices. The issuer is willing to provide on a regular basis informative reports on the use of funds and the sustainable development effect of projects.

No

SDR4

In ACRA’s opinion, the proceeds from the issuance of sustainable development debt obligations are unlikely to be allocated to implementation of sustainable development projects. The issuer’s approaches to selecting projects and managing the funds raised lag behind best global practices. The issuer is willing to provide reports on a regular basis only containing general information about the use of funds and the sustainable development effect of projects.

SDR5

In ACRA’s opinion, the proceeds from the issuance of sustainable development debt obligations are very unlikely to be allocated to implementation of sustainable development projects. The issuer’s approaches to selecting projects and managing the funds raised are not in line with best global practices. The issuer is not willing to provide reports on a regular basis on the use of funds and the sustainable development effect of projects.

Source: ACRA

ESG assessment score

ESG assessment score is a symbolic indicator that reflects ACRA’s independent and subjective opinion, acting as a third-party organization, about the activities of an entity in the Environmental, Social and Governance areas. ACRA’s subjective opinion is based on the results of an independent assessment provided for by the Methodology for ESG Assessment.

The assigned assessment score is not a credit rating or its component.

Table 4. ESG score scale

Category

Score

Description

ESG-A

ESG-1

The highest ESG score. ESG aspects are a top priority for the assessed entity.

ESG-B

ESG-2

Very high ESG score. The assessed entity pays much attention to ESG affairs.

ESG-3

ESG-4

ESG-C

ESG-5

High ESG score. The assessed entity pays sufficient attention to ESG aspects.

ESG-6

ESG-7

ESG-D

ESG-8

Medium ESG score. The assessed entity pays attention to a significant portion of ESG aspects.

ESG-9

ESG-10

ESG-E

ESG-11

Acceptable ESG score. The assessed entity pays no attention to some ESG aspects.

ESG-12

ESG-13

ESG-F

ESG-14

Low ESG score. No clear ESG strategy; ESG aspects are not considered in making managing decisions.

ESG-15

ESG-16

ESG-G

ESG-17

Very low ESG score. No attention is paid to ESG aspects.

Source: ACRA


1 International Capital Market Association.

2 Loan Market Association.

3 Social Bond Principles.

4 Sustainability Bond Guidelines.

5 Sustainability Linked Loan Principles.

Contact persons

Sergey Kutenko
Director - Acting Head of the Methodology Group
+7 (495) 139-0480, доб. 133


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