Dos and don’ts relating to green debt securities to avoid occurrences of greenwashing

Greenwashing prevention: issuers must ensure compliant use of proceeds and transparent disclosure to investors and ongoing monitoring.

Issuers of green debt securities must use proceeds only for activities within the regulatory definition, continuously monitor transition pathways to confirm reduction of adverse environmental impacts, quantify negative externalities, avoid misleading labels or false third party certification claims, disclose any non compliant use to investors, and, if required by debenture holder majority, undertake early redemption, while adhering to assigned ratings and continuous disclosure obligations.