INTERNATIONAL ISO

STANDARD 32210

First edition
2022-10

Sustainable finance — Guidance

on the application of sustainability
principles for organizations in the
financial sector
Finance durable — Lignes directrices pour l’application des principes
de durabilité aux organisations dans le domaine financier
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(standards.iteh.ai)
ISO 32210:2022
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073430a657e4/iso-32210-2022

Reference number
ISO 32210:2022(E)

© ISO 2022
ISO 32210:2022(E)

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ISO 32210:2022
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073430a657e4/iso-32210-2022

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© ISO 2022
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
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 ISO 32210:2022(E)

Contents Page

Foreword......................................................................................................................................................................................................................................... iv
Introduction..................................................................................................................................................................................................................................v
1 Scope.................................................................................................................................................................................................................................. 1
2 Normative references...................................................................................................................................................................................... 1
3 Terms and definitions..................................................................................................................................................................................... 1
4 Sustainable finance principles............................................................................................................................................................... 6
4.1 General............................................................................................................................................................................................................ 6
4.2 Governance and culture.................................................................................................................................................................. 7
4.3 Strategy alignment and objectives........................................................................................................................................ 8
4.4 Risk and opportunity management and impact assessment......................................................................... 8
4.5 Stakeholder engagement................................................................................................................................................................ 8
4.6 Monitoring, measuring and metrics..................................................................................................................................... 9
4.7 Reporting, transparency and assurance.......................................................................................................................... 9
4.8 Continual improvement and enhancing ambition.................................................................................................... 9
5 Implementation of sustainable finance........................................................................................................................................ 9
5.1 General............................................................................................................................................................................................................ 9
5.2 Governance and culture............................................................................................................................................................... 10
5.2.1 Governing body accountability........................................................................................................................... 10
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5.2.2 Systematic review........................................................................................................................................................... 11
5.2.3 Internal performance management and compensation................................................................ 11
5.3 Strategy alignment and objectives..................................................................................................................................... 12
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5.3.1 General...................................................................................................................................................................................... 12
5.3.2 Sustainability statement or policy................................................................................................................... 12
5.3.3 Benchmarking and gap analysis......................................................................................................................... 13
5.3.4 Transition plan and ISO 32210:2022
strategy implementation plan.......................................................................... 13
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5.3.5 Development of new products and services............................................................................................ 13
5.4 Risk and opportunity 073430a657e4/iso-32210-2022
management and impact assessment...................................................................... 14
5.4.1 General...................................................................................................................................................................................... 14
5.4.2 Organizational-level risk evaluation and impact assessment.................................................. 16
5.4.3 Client, asset and portfolio-level risk and impact assessment.................................................. 17
5.4.4 Scenario analysis.............................................................................................................................................................. 18
5.4.5 Alignment with other principles........................................................................................................................ 20
5.5 Stakeholder engagement............................................................................................................................................................. 20
5.6 Monitoring, measuring and metrics.................................................................................................................................. 22
5.6.1 General...................................................................................................................................................................................... 22
5.6.2 Asset management plan (for real assets)................................................................................................... 23
5.7 Reporting, transparency and assurance....................................................................................................................... 23
5.8 Continual improvement and enhancing ambition................................................................................................. 24
Bibliography.............................................................................................................................................................................................................................. 25

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ISO 32210:2022(E)

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www.iso.org/patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
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expressions related to conformity assessment, as well as information about ISO’s adherence to
the World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see
(standards.iteh.ai)
www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 322, Sustainable finance.
Any feedback or questions on this document shouldISO 32210:2022
be directed to the user’s national standards body. A
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complete listing of these bodies can be found at www.iso.org/members.html.
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 ISO 32210:2022(E)

Introduction
Addressing global environmental and social challenges, and supporting sustainability, including
tackling climate change, cannot be reached without the support of the financial sector. In understanding
and developing an alignment of interest in tackling these challenges, organizations can contribute
toward positive environmental and social outcomes, improve governance, address externalities from
owned and financed assets, mitigate risk, realize opportunity and drive value. Transparent assessment,
management and reporting across all dimensions of sustainability can offer confidence and reassurance
to key stakeholders.
This document is designed to support organizations to integrate key principles of sustainability into
operations and activities, to help achieve these mutually beneficial outcomes.
The term “sustainable finance” has not been defined in this document, enabling organizations
to develop their own approach to the integration of sustainability into operations and activities.
However, this document does provide guidance on how key sustainability principles, including those
related to environmental, social and governance factors, can be integrated at the organizational level
into operations and core business strategy. It can support in mitigating risk, realizing opportunity
and driving value. It is designed to be complementary to, and can be implemented alongside, other
sustainability initiatives and requirements. This document is based on application of principles and
processes within an overarching framework. Components of the framework will already exist, at least
in part, within the organization. However, application of the principles and guidance provided in this
document will support in adapting or enhancing these components, so that integration of sustainability
is more effective, efficient and consistent. This document is designed to demonstrate organizational
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alignment with wider environmental and social goals such as the appropriate elements of the United
Nations Framework Convention on Climate Change’s Paris Agreement[33] and the United Nations
(standards.iteh.ai)
Sustainable Development Goals[34]. Some elements of this document can also support organizational
alignment with the Task Force for Climate-related Finance Disclosures[31], and other international
initiatives and conventions as appropriate.
ISO 32210:2022
Although this document is designed primarily for application by organizations, the principles and
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guidance can also be applied at the product and service level across a range of markets and instruments
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including within debt, equity, risk transfer, blended products and other financial services.
Implementation of the principles and guidance will require interfacing with a number of organizational
departments, roles and stakeholders. This document can be used by personnel within an organization
and those supporting and advising an organization. Typically, these roles would be associated with
managing and promotion of organizational sustainability performance. However, successful integration
of sustainability is supported by engagement with many internal and external stakeholders, including,
but not limited to, those responsible for:
— fulfilling fiduciary responsibilities;
— setting and monitoring progress against strategic goals;
— understanding and monitoring risk and threats;
— business development including developing new products, services and partnerships;
— ensuring compliance;
— approving investments and capital allocation;
— monitoring investment portfolios;
— training and capacity building;
— mapping and analysing sustainability performance;
— engagement with, and reporting to, stakeholders.

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ISO 32210:2022(E)

The document has been designed so that an organization can apply the principles and guidance to
the extent applicable, given the organization’s scale, activities, geographical presence and ambition.
Organizations at different stages of integration of sustainability can apply all or parts of the principles
and guidance, depending on existing components and degree of operational capability and capacity.
The document is designed around promoting transparency, so that the organization’s stakeholders can
consider progress and performance.
Assurance of reported operational performance, whether internal or external, can provide additional
trust and confidence to stakeholders and is strongly encouraged.
Organizations using this document will be able to demonstrate alignment with sustainability principles,
guidance and practices, and internal governance provided in this document through their actions,
including stakeholder engagement, reporting and disclosures.
Continual improvement is a core aspect of the principles and guidance. The progression towards greater
sustainability requires ongoing improvement of operational performance and progress to related
sustainable outcomes. Therefore, an organization should ensure it is using relevant good practice,
leading methods and approaches as appropriate.
Key documents and outputs from implementation of the principles and guidance include:
— a sustainability statement or sustainability policy;
— development of strategic goals on material sustainability issues;

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— development of suitable metrics and associated key performance indicators;
—
(standards.iteh.ai)
executive and governing body accountability for sustainability matters;
— executive compensation aligned with sustainability performance and outcomes;
ISO processes
— a systematic review of existing organizational 32210:2022and resources;
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— a stakeholder engagement plan; 073430a657e4/iso-32210-2022
— a list or register of material sustainability impacts;
— benchmarking, peer review and gap analysis;
— a transition plan;
— a strategic implementation plan;
— scenario analysis, risk impact assessment and mitigation plan;
— public reporting showing material sustainability impacts and relevant progress, performance and
outcomes;
— external assurance.
Additional resources are available on the website of ISO/TC 322 to support users in the application of
the principles and practices provided in this document, see: https://committee.iso.org/home/tc322.

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INTERNATIONAL STANDARD ISO 32210:2022(E)

Sustainable finance — Guidance on the application of

sustainability principles for organizations in the financial
sector

1 Scope
This document gives guidance to organizations on the application of overarching sustainability
principles, practices and terminology for financing activities.
It addresses what is material from the perspective of the organization and of its stakeholders.
This document is applicable to all organizations active in the financial sector, including, but not limited
to, direct lenders and investors, asset managers and service providers.
Beyond financial institutions and intermediaries, this document can be used by other parties in the
financial sector such as providers or recipients of sustainable finance, governmental organizations,
public and private sector institutions, business entities, industry associations, financial market
regulators, and supervisory and control bodies.

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2 Normative references

(standards.iteh.ai)
There are no normative references in this document.

3 Terms and definitions ISO 32210:2022

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For the purposes of this document, the following terms and definitions apply.
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ISO and IEC maintain terminology databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https://​w ww​.iso​.org/​obp
— IEC Electropedia: available at https://​w ww​.electropedia​.org/​
3.1
sustainability
state of the global system, including environmental, social and economic aspects, in which the needs
of the present are met without compromising the ability of future generations to meet their own needs
[SOURCE: ISO Guide 82:2019, 3.1, modified — Notes to entry deleted.]
3.2
material sustainability impact
impact (3.7) identified either by the organization (3.3) or by the organization’s stakeholders (3.15) as
material, either to the financial performance of that organization, or to the organization’s impact on
sustainability (3.1)
3.3
organization
person or group of people that has its own functions with responsibilities (3.10), authorities and
relationships to achieve its objectives (3.4)
[SOURCE: ISO 37301:2021, 3.1, modified — Notes to entry deleted.]

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3.4
objective
result to be achieved
[SOURCE: ISO 37301:2021, 3.6, modified — Notes to entry deleted.]
3.5
strategic plan
document identifying goals and objectives (3.4) to be pursued by an organization (3.3) over a long-term
period in support of its mission and being consistent with its values
[SOURCE: ISO 24516-3:2017, 3.25]
3.6
transformational change
activity resulting from a shift in organizational expectation, awareness or purpose, which results in a
profoundly different organizational culture, governance, structure, performance and outcomes
3.7
impact
past, current or future change, outcome, effect or influence, whether adverse or beneficial
3.8
governance of organizations
human-based system by which an organization (3.3) is directed, overseen and held accountable for
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achieving its defined purpose
[SOURCE: ISO 37000:2021, 3.1.1]
3.9
(standards.iteh.ai)
fiduciary responsibility
requirement of fiduciaries to act in the best long-term interests of their clients and beneficiaries
ISO 32210:2022
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Note 1 to entry: Fundamental fiduciary responsibilities include duty of loyalty and duty of care, to consider all
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value and risk drivers including environmental, social and governance factors.

3.10
responsibility
obligation to act and take decisions to achieve intended outcomes
Note 1 to entry: See also accountability (3.13).

[SOURCE: ISO/IEC 38500:2015, 2.22, modified — “intended” replaced “required” in the definition.
Note 1 to entry added.]
3.11
top management
person or group of people who directs and controls an organization (3.3) at the highest level
Note 1 to entry: Top management has the power to delegate authority and provide resources within the
organization.

[SOURCE: ISO 37301:2021, 3.3, modified — Notes 2 and 3 to entry deleted.]

3.12
governing body
person or group of people who have ultimate accountability (3.13) for the whole organization (3.3)
Note 1 to entry: Every organizational entity has one governing body, whether or not it is explicitly established.
When the organization is not an organizational entity, the term governing group is applicable where “governing
body” is used throughout this document.

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 ISO 32210:2022(E)

Note 2 to entry: A governing body can be explicitly established in a number of formats including, but not limited
to, a board of directors, supervisory board, sole director, joint and several directors, or trustees.

Note 3 to entry: ISO management system standards make reference to the term “top management” (3.11) to
describe a role that, depending on the standard and organizational context, reports to, and is held accountable
by, the governing body.

[SOURCE: ISO 37000:2021, 3.3.4]

3.13
accountability
obligation to another for the fulfilment of a responsibility (3.10)
Note 1 to entry: The obligation includes the duty to inform and to explain the manner in which the responsibility
was fulfilled.

Note 2 to entry: The non-fulfilment of a responsibility has consequences that can be enforced on the accountable
party.

[SOURCE: ISO 37000:2021, 3.2.2]

3.14
stakeholder engagement
activity undertaken to create opportunities for dialogue between an organization (3.3) and one or more
of its stakeholders (3.15), with the aim of providing an informed basis for the organization’s decisions

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[SOURCE: ISO 26000:2010, 2.21]
3.15
stakeholder (standards.iteh.ai)
person, interested party or organization (3.3) that can affect, be affected by, or perceive itself to be
affected by a decision or activity
ISO 32210:2022
[SOURCE: ISO 44001:2017, 3.2, modified — “interested party” moved from the term into the definition.]
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continual improvement
recurring activity to enhance performance
[SOURCE: ISO 37301:2021, 3.12]
3.17
asset
tangible or intangible item or thing with an actual or potential financial or non-financial value to an
organization (3.3)
[SOURCE: ISO 55000:2014, 3.2.1, modified — “tangible or intangible item or thing with an actual or
potential financial or non-financial” replaced “item, thing or entity that has potential or actual” in the
definition. Notes to entry deleted.]
3.18
liability
present obligation of the organization (3.3) arising from past events, the settlement of which is expected
to result in an out-flow of resources from the organization
[SOURCE: ISO/TS 55010:2019, 3.18]
3.19
risk
effect of uncertainty on objectives (3.4)
Note 1 to entry: An effect is a deviation from the expected. It can be positive, negative or both, and can address,
create or result in opportunities and threats.

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ISO 32210:2022(E)

Note 2 to entry: Objectives can have different aspects and categories, and can be applied at different levels.

Note 3 to entry: Risk is usually expressed in terms of risk sources, potential events, their consequences and their
likelihood.

Note 4 to entry: Risk can be considered as the likelihood or probability that actual results or outcomes will differ
from expected results or return, representing the effect of uncertainty on investment or lending or insurance
objectives. This effect can be positive or negative, comprising opportunities and threats over varying time
horizons.

[SOURCE: ISO 31000:2018, 3.1, modified — Note 4 to entry added.]

3.20
risk appetite
amount and type of risk (3.19) that an organization (3.3) is willing to pursue or retain
[SOURCE: ISO Guide 73:2009, 3.7.1.2]
3.21
risk control
actions implementing risk-management decisions to mitigate, limit or reduce frequency or severity of
risks (3.19) and negative consequences
Note 1 to entry: Risk control can involve monitoring, re-evaluation and compliance with decisions.

[SOURCE: ISO 13824:2020, 3.13, modified — “to mitigate, limit or reduce frequency or severity of risks
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and negative consequences” added to the definition.]
3.22
risk mitigant (standards.iteh.ai)
measures implemented by which risks (3.19) are reduced to, or maintained within, specified levels
3.23 ISO 32210:2022
systemic risk https://standards.iteh.ai/catalog/standards/sist/1f1787c2-979d-4ace-85e8-
risk (3.19) leading to potential collapse or failure of an entire market, global economy, or environmental
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and socio-political systems with the transmission of shocks leading to broader contagion and further
systemic impacts
3.24
scenario
plausible description of how the future can develop based on a coherent and internally consistent set of
assumptions about key driving forces and relationships
Note 1 to entry: Key driving forces can be, for example, demographics, interest rates, degrees of warming, rate of
technological change or prices.

[SOURCE: IPCC, 2018, Annex I[29], modified — The examples of key driving forces moved to Note 1 to
entry and expanded.]
3.25
scenario analysis
process for identifying and assessing the potential implications of a range of plausible future states on
operations, activities, products and services under various conditions
3.26
biodiversity
variability among living organisms from all sources including, inter alia, terrestrial, marine and other
aquatic ecosystems and the ecological complexes of which they are part
Note 1 to entry: This variability includes diversity within species, between species and of ecosystems.

[SOURCE: United Nations Convention on Biological Diversity, 1992, Article 2[32], modified —
“biodiversity” replaced “biological diversity” as the term.]

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3.27
circular economy
economy that is restorative and regenerative by design, and which aims to keep products, components
and materials at their highest utility and value at all times, distinguishing between technical and
biological cycles
[SOURCE: ISO 20400:2017, 3.1]
3.28
resilience
ability to absorb and adapt in a changing environment
[SOURCE: ISO 22300:2021, 3.1.206, modified — Note 1 to entry deleted.]
3.29
transition plan
actionable proposal, embedded in organizational strategy, that outlines how an entity will shift from
unsustainable economic activities and operational processes and systems toward sustainable activities
and operational processes and systems
Note 1 to entry: The transition plan can include short-, medium- and long-term targets to achieve net-zero carbon
emissions by 2050 or sooner.

3.30
key performance indicator
KPI
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quantifiable level of achieving an objective (3.4)

data and/or other KPIs.

(standards.iteh.ai)
Note 1 to entry: The KPIs are derived directly from, or through an aggregation function of, physical measurements,

[SOURCE: ISO 22400-1:2014, 2.1.5, modified — “critical” deleted before “objective”.]

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metric 073430a657e4/iso-32210-2022
defined measurement method and measurement scale that can demonstrate contribution to a key
performance indicator (3.30)
[SOURCE: ISO/TR 37150:2014, 3.5, modified — “that can demonstrate contribution to a key performance
indicator” added to the definition.]
3.32
transparency
open, comprehensive and understandable presentation of information
[SOURCE: ISO 14040:2006, 3.7]
3.33
baseline
agreed reference value or set of values which can be derived from past experience, often used for
comparing with ongoing performance data, values or outcomes
[SOURCE: ISO 37500:2014, 3.1, modified — “or” replaced “and/or” before “outcomes”.]
3.34
benchmarking
comparing attributes, processes or performance between organizations (3.3)
[SOURCE: ISO 30400:2016, 3.17]

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3.35
asset management
coordinated activity of an organization (3.3) to realize value from assets (3.17)
[SOURCE: ISO 55000:2014, 3.3.1, modified — Notes to entry deleted.]
3.36
asset management plan
documented information that specifies the activities, resources and timescales required for an
individual asset (3.17), or a grouping of assets, to achieve the organization’s (3.3) asset management
objectives
Note 1 to entry: This includes the organization’s sustainable finance objectives within asset management (3.35).

[SOURCE: ISO 55000:2014, 3.3.3, modified — Notes to entry deleted and a new Note 1 to entry added.]
3.37
business-as-usual scenario
ongoing and unchanging state of affairs
3.38
modern slavery
all work or service which is exacted from any person under the menace of any penalty and for which the
said person has not offered their self voluntarily

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[SOURCE: ILO, Forced Labour Convention, 1930 (No. 29)[28], modified — “modern slavery” replaced
“forced or compulsory labour” as the term. “their self” replaced “himself” in the definition.]
3.39
climate change adaptation
(standards.iteh.ai)
process of adjustment to actual or expected climate and its effects
ISO 32210:2022
Note 1 to entry: In human systems, adaptation seeks to moderate or avoid harm or exploit beneficial opportunities.
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073430a657e4/iso-32210-2022
Note 2 to entry: In some natural systems, human intervention can facilitate adjustment to expected climate and
its effects.

[SOURCE: ISO 14090:2019, 3.1, modified — “climate change adaptation” replaced the preferred term
“adaptation to climate change”.]
3.40
whistleblower
person who reports suspected or actual wrongdoing, and has reasonable belief that the information is
true at the time of reporting
[SOURCE: ISO 37002:2021, 3.9, modified — Notes to entry deleted.]
3.41
value chain
entire sequence of activities or parties that create or receive value through the provision of a product
or service
[SOURCE: ISO 14050:2020, 3.5.28, modified — “or service” added.]

4 Sustainable finance principles

4.1 General
This clause describes the key sustainable finance principles (hereinafter referred to as “Principles”)
which form the core elements of this document. The Principles outlined in 4.2 to 4.8 are aimed at

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