Introduction

This document provides guidance on identifying and assessing environmental aspects and impacts, and performance criteria for projects, assets and activities.

The intent is to support the development of green finance by assisting borrowers and financiers to take into account the environmental aspect and impacts or environmental performance of the project, asset or activity for which funds are sought. The guidance is applicable to individual, corporate or public entities providing or seeking green finance, regardless of size. A framework to determine relevant environmental criteria supported by credible information is presented. The objective of applying these criteria is to avoid, minimize, reduce and mitigate adverse environmental impacts and risks, as well as to identify opportunities to optimize environmental performance.

Key concepts involved in identifying and assessing relevant environmental criteria, including significance, context and materiality as well as “do no significant harm”, are examined and examples presented. The relationship between what is determined to be environmentally significant and materiality is also explained. Concerns related to greenwashing that affect green financing decisions are addressed. Relevant information is identified to assist borrowers and financiers to align with the principles presented and to facilitate access to green finance.

This guidance is designed to be flexible. Intended users can determine the application that best suits their internal and external context. This may include, but is not limited to, their policies, processes, systems, operating environments, economic constraints, interested party needs and relevant regulatory requirements. Organizations are also provided insight on sources of information that can be applied to manage their environmental aspects to reduce their environmental impacts, manage environmental risks and optimize operational performance overall. The objective is to improve green financing, facilitate transparency and align the organization’s activities with national and international environmental goals and agreements.

The environment operates as a system that includes people, and the interaction that they have with the environment and their interrelationship as citizens, communities, corporations and countries. Increasingly, there is an understanding of a critical need to address the impact on the environment that results as an outcome of human activity. There is also a parallel need to understand the effect that changes to the environment are having on humans, whether it is related to specific social concerns or broader societal issues, with immediate to long-term consequences. Green financing offers the opportunity to ensure that all three pillars critical for a sustainable future are addressed.

Annexes A to D provide additional knowledge, and covers the relationship of key concepts, other International Standards, initiatives that can help with green finance, and improving the opportunity for small and medium-sized enterprises (SMEs).

BS ISO 14100:2022

Guidance on environmental criteria for projects, assets and activities to support the development of green finance

Current

Published:

31 Aug 2022