State of Hessen

Between the 2021/2023 framework (evaluated in the 2023 SPO document) and the 2025 framework for Hesse's third Green Bond, there is a significant evolution in the framework structure and scope. The 2025 version explicitly establishes this as a new framework for a third bond iteration, clearly delineating applicability to avoid confusion with prior issuances. The framework has expanded to include explicit climate protection targets, a more detailed sustainability strategy alignment section, and substantially more developed use of proceeds categories with specific mapping and exclusion criteria. The document structure has become more comprehensive with dedicated sections for ESG risk management, proceeds management, and reporting commitments that were not explicitly detailed in the earlier SPO assessment.

• expanded Use of Proceeds — Framework expanded from basic eligible project categories to detailed 'Possible uses' section with explicit mapping of eligible green expenditures (referenced but not fully shown in excerpt).
• expanded Eligibility Criteria — Added specific section on 'Exclusion of harmful expenditures' (Section 3.1.2) establishing clear exclusion framework not present in earlier version.
• expanded Standards Alignment — Added new section (3.1.3) on 'Implementation of and orientation towards internationally recognised market standards' demonstrating enhanced commitment to standards beyond GBPs.
• added Climate Target — 2025 version explicitly includes 'Climate protection targets of the State of Hesse' as a primary framework section with detailed sustainability strategy alignment.
• expanded Governance — Added explicit ESG risk management section (3.3) and dedicated proceeds management section (3.4) not separately outlined in earlier SPO document.
• expanded Reporting — Introduced dedicated reporting section (3.5) reflecting enhanced transparency and accountability commitments.
• clarified Framework Scope — Explicitly clarified that 2025 framework applies only to the third Green Bond, while earlier frameworks (2021, 2023) remain applicable to their respective issuances.

The 2023 version represents a significant shift from the original 2021 Green Bond Framework document to a comprehensive Second Party Opinion (SPO) assessment by ISS ESG. Rather than a simple framework revision, this newer version adds formal external verification and expanded sustainability analysis against international standards. The document now includes detailed evaluation of Hessen's ESG performance, alignment with UN Sustainable Development Goals, and environmental/social risk management frameworks—elements not present in the original 2021 framework document.

• added Standards Alignment — Added comprehensive Second Party Opinion (SPO) assessment framework with formal verification against Green Bond Principles (GBPs) administered by ICMA
• added Standards Alignment — Introduced structured assessment of alignment with UN Sustainable Development Goals (SDGs) as evaluation criteria
• expanded Eligibility Criteria — Expanded verification scope to include lifecycle validity and pre-issuance verification parameters with clarity that framework applies as long as no new project categories are added
• added Governance — Added independent third-party verification (ISS ESG) to assess sustainability quality of issuer and green bond framework
• added Governance — Introduced formal environmental and social risk management assessment for eligible use of proceeds categories