The commitment to the future and the need to promote a more sustainable planet reinforce the necessity of creating mechanisms to finance the transition to a low-carbon economy. Frameworks are fundamental documents in the process of issuing green bonds. CVR helps to construct this document aligned with the Principles published by the International Capital Market Association (ICMA).
Green financial instruments play a fundamental role in mitigating negative impacts on the environment. These instruments allow companies to invest in projects related to, for example, energy efficiency, renewable energy, sustainable transportation, waste management, nature conservation, or projects with social impact. Green instruments include:
- Green Bonds
- Social Bonds
- Sustainability Bonds
- Sustainability-linked Bonds
Funds obtained through the issuance of Green Bonds must be used exclusively to finance or refinance projects that have a clear environmental benefit, designated as eligible green projects.
Social Bonds, on the other hand, are intended for financing projects with a positive social impact, promoting, for example, food security, access to essential services and infrastructure, and the development of employment generation programs.
When these eligible projects simultaneously fall under green and social project categories, the bonds issued are designated as Sustainability Bonds.
Sustainability-linked Bonds are bonds with a variable rate dependent on the achievement of certain sustainability goals. In this sense, companies commit to meeting these goals within a predefined time period.