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08 December 2022
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”) within the GIG Progress Report for the year ended 31 March 2022.
The following Green Impact indicators were subject to our assurance, for reporting of “Lifetime green impact from all investments made to date” and “Additional lifetime green impact from investments made in 2021/22”:
Together these constitute the “Assured Disclosures”.
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 (the “Reporting Criteria”), materially misstate the Green Impact for the year ended 31 March 2022. 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.
We draw your attention to Note 4, of Notes to the Statements, which explains that the indicator for GIG’s ‘Estimated lifetime GHG emissions reduction of all GIG investments to date’, includes the lifetime impact of a corporate use-of-proceeds loan previously made to Drax Power Station by the UK Green Investment Bank. Management have set out their assessment of allegations by the BBC’s Panorama programme about Drax’s Canadian biomass sourcing operations which would, if true, result in higher GHG emissions over the lifecycle of wood pellet production and use than those estimated by GIG, and their consideration of the impact of these allegations on the reported indicator. Our conclusion is not modified in this respect.
The Directors are responsible for preparing the GIG Progress Report.
Our responsibility is to express a conclusion on the Assured Disclosures based on our procedures. We conducted our engagement in accordance with International Standard on Assurance Engagements ISAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information (“ISAE 3000 (Revised)”), issued by the International Auditing and Assurance Standards Board (“IAASB”), in order to state whether anything had come to our attention that causes us to believe that the Assured Disclosures have not been prepared, in all material respects, in accordance with the applicable criteria.
We apply International Standard on Quality Control 1 and, accordingly, maintain 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 procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement and consequently, 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 work has been undertaken so that we might state to the Company those matters we are required to state to them 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 the Company and the company’s members as a body for our work, this report, or for the conclusions we have formed.
Our report is made solely to the GIB’s Directors, as a body, 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 to them 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 the Company and the company’s members as a body 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, GIG 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.
In conducting our engagement, we have complied with the independence and other ethical requirements of the Code of Ethics of the Institute of Chartered Accountants of England and Wales which include the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.
Deloitte LLP
London, United Kingdom
1 December 2022
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 performance-related Green Impact Data (“Green Impact Data”) associated with two Green Investment Group (“GIG”) branded funds, MGREF1 and MGREF2 (“the Funds”), within the GIG Progress Report for the year ended 31 March 2022.
The following Green Impact indicators were subject to our assurance, for reporting of “Lifetime green impact from all investments made by the fund to date” and “Additional lifetime green impact from investments made by the fund in 2021/22”:
Together these constitute the “Assured Disclosures”.
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 (the “Reporting Criteria”), materially misstate the Green Impact for the year ended 31 March 2022. 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.
Our responsibility is to express a conclusion on the Assured Disclosures based on our procedures. We conducted our engagement in accordance with International Standard on Assurance Engagements ISAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information (“ISAE 3000 (Revised)”), issued by the International Auditing and Assurance Standards Board (“IAASB”), in order to state whether anything had come to our attention that causes us to believe that the Assured Disclosures have not been prepared, in all material respects, in accordance with the applicable criteria.
We apply International Standard on Quality Control 1 and, accordingly, maintain 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 procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement and consequently, 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 the GIB’s Directors, as a body, 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 to them 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 the Company and the company’s members as a body 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.
Our work has evaluated the application of principles set out in GIG’s Reporting Criteria to projects included within the Funds’ reporting of Green Impact Data. We have not conducted a re-evaluation of the continued relevance or accuracy of historical assumptions made by GIG or third-party advisors prior to projects being acquired by the Funds.
GIG does not receive project data or conduct further estimations following the exit date from an investment.
With respect to disposals, GIG 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.
In conducting our engagement, we have complied with the independence and other ethical requirements of the Code of Ethics of the Institute of Chartered Accountants of England and Wales which include the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.
Deloitte LLP
London, United Kingdom
1 December 2022
