Following SEBI's expanded ESG Debt Securities framework effective from June 5, 2025, which of the following is a mandatory operational requirement for an issuer of Green Bonds to ensure transparency and prevent greenwashing in 2026?

Environment, Social and Governance Debt Securities  or  ESG  Debt  Securities means green debt securities, social bonds, sustainability bonds, sustainability-linked bonds, or  any other type of bonds, by whatever name called, that are issued in accordance with such international frameworks.   A Green Bond is a type of a bond which is issued to finance projects that generate environmental benefits, such as renewable energy, energy efficiency, clean transportation and sustainable water projects, among others. A Green Bond, under the ‘ Disclosure Requirements for Issuance and Listing of Green Debt Securities’ circular by SEBI is defined as debt securities which are to be utilised for projects and/or assets falling under any of the following categories:

• Renewable and sustainable energy including wind, solar, bioenergy, other sources of energy which use clean technology, etc.
• Clean transportation including mass/public transportation, etc.
• Sustainable water management including clean and/or drinking water, water recycling, etc.
• Climate change adaptation.
• Energy efficiency including efficient and green buildings, etc.
• Sustainable waste management including recycling, waste to energy, efficient disposal of wastage, etc.
• Sustainable land use including sustainable forestry and agriculture, afforestation, etc.
• Biodiversity conservation and any other category as maybe notified by SEBI.

  To enhance credibility and align with global standards, SEBI's revised framework mandates that issuers of Green Debt Securities must appoint an independent third-party reviewer (which could be a SEBI-registered ESG Rating Provider) to certify the green credentials of the projects.   SEBI now groups Green Bonds under the broader umbrella of ESG Debt Securities, which also includes social and sustainability bonds.   Issuers must disclose the environmental impact of the projects and the status of fund utilization in their annual reports and on a half-yearly basis.