Second-party opinion

Definition

A second-party opinion is an independent external review of a sustainable financing framework — most commonly a green, social or sustainability bond framework, or the targets in a sustainability-linked instrument — assessing its alignment with recognised market principles such as the ICMA Green Bond Principles or Sustainability-Linked Bond Principles. It is obtained before issuance from a specialist reviewer (an ESG research or ratings provider) and evaluates the framework itself: eligible categories, selection process, management of proceeds, reporting commitments, and the ambition of any targets. It is distinct from verification, which is ex-post confirmation of allocations and outcomes, and from a credit rating, which assesses repayment risk. ICMA recommends external review but does not mandate it.