The International Stock Exchange (TISE) has a market segment, TISE GREEN, to enable those seeking investment into environmentally beneficial initiatives to highlight their green credentials while, at the same time, providing easier access for investors who are looking to invest in securities which have been verified as meeting globally recognised standards in green finance.
TISE GREEN is open to issuers (including debt issuers, investment vehicles such as funds and trading companies) from any jurisdiction which have listed securities on TISE whose proceeds are explicitly for the purpose of financing green businesses, investments or projects generating a positive environmental impact.
To be eligible for entry to TISE GREEN, the issuer must have securities listed on TISE, at least 75% of assets must be invested in activities with a positive environmental impact and the green credentials of these securitites must be in compliance with globally recognised standards, as verified by a suitable independent third party (such as an audit firm or rating agency).
An issuer can apply for entry to TISE GREEN as part of the initial listing process or post listing and, beyond the usual fees for listing on TISE's Official List, there is no additional charge for entry to, or an ongoing presence on, TISE GREEN.
As part of the application process the issuer must outline how it is creating a positive environmental impact with alignment to an industry recognised standard, and provide a declaration that it will commit to submitting an updated third party verification of green credentials on an annual basis. The annual verification should involve a review of the actual use of proceeds, as compared to the planned use of proceeds, and confirmation that the issuer is acting within its green investment remit.
Debt Issuers
TISE recognises that the Green Bond Principles guidelines, as produced by the International Capital Markets Association, provide an industry recognised standard for green projects, and recommends these as a basis for qualifying for TISE GREEN. The Climate Bonds Initiative has an approved list of verifiers for the Climate Bond Certificate, which is complementary to the Green Bond Principles and would satisfy the minimum criteria of a third party verification.
Equity Issuers
Regulatory designation for investment vehicles / funds, such as the Guernsey Green Fund Route 1 designation, will satisfy the minimum criteria of a third party verification. Other green investment vehicles or fund certifications will be considered.
TISE aims to publish additional recognised standards when appropriate.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
