05 October 2021
To: the Directors of UK Green Investment Bank Limited
We have been engaged by the Directors of the UK Green Investment Bank Limited (“GIB”) to conduct a limited assurance engagement over specified Assured Disclosures. The Assured Disclosures comprise Green Investment Group (“GIG”)’s performance-related Green Impact Data (“Green Impact Data”) and the application of Equator Principles within the GIG Progress Report for the year ended 31 March 2021.
Based on our work as described in this report, nothing has come to our attention that causes us to believe that the Assured Disclosures, which have been prepared in accordance with the GIG Green Impact Reporting Criteria and Equator Principles Reporting Criteria (the “Reporting Criteria”), materially misstate the Green Impact for the year ended 31 March 2021. The data have been prepared on the basis of the methodology set out in the respective GIG Reporting Criteria which can be seen on the GIG website.
The Directors are responsible for preparing the GIG Progress Report, including the following Assured Disclosures:
Estimated lifetime performance for new GIG investments in the reporting period and all GIG investments to date as at financial year end.
Total number of Project Finance transactions and Project-Related Corporate Loans that reached financial close within the reporting period, to which the Equator Principles apply (absolute).
Our responsibility is to express a conclusion on the selected subject matter based on our procedures. We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with the independence and ethical requirements and to plan and perform our assurance engagement to obtain sufficient appropriate evidence on which to base our limited assurance conclusion. We performed the engagement in accordance with Deloitte’s independence policies, which cover all of the requirements of the International Ethics Standards Board for Accountants (“IESBA”) Code of Ethics and the Financial Reporting Council (“FRC”) Revised Ethical Standard 2019 and in some areas are more restrictive. The firm applies the International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our engagement provides limited assurance as defined in ISAE 3000 (Revised). The evidence gathering procedures for a limited assurance engagement are more limited than for a reasonable assurance engagement, and therefore the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
Our procedures consisted primarily of:
Our report is made solely to GIB, in accordance with ISAE 3000 (Revised). Our work has been undertaken so that we might state to GIB those matters we are required to state in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than GIB for our work, this report, or for the conclusions we have formed.
Since the Estimated Lifetime Green Impact Data are based on assumptions about the future which cannot be predicted with certainty, as with any predictions about the future, the actual future Green Impact Data may be more or less than the stated Estimated Lifetime Data.
GIG does not receive project data or conduct further estimations following the exit date from an investment.
With respect to disposals, GIB processes do not require reconciliation between: the operating assumptions on which Estimated Lifetime Green Impact Data is based; and asset actual or expected performance data (if any) stated in investment disposal documentation. Consequently we rely on written management representations to confirm that Estimated Lifetime Green Impact Data with respect to disposed-of investments is based on the best information available to GIB management at the point of disposal.
We performed the engagement in accordance with Deloitte’s independence policies, which cover all of the requirements of the International Federation of Accountants’ Code of Ethics and in some areas are more restrictive. The firm applies the International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
4 October 2021