CUSIP Global Services Adds Environmental, Social and Governance (ESG) Bond Indicators to its Reference Data Feeds KPVI News 6CUSIP Global Services Adds Environmental, Social and Governance (ESG) Bond Indicators to its Reference Data Feeds KPVI News 6CUSIP Global Services Adds Environmental, Social and Governance (ESG) Bond Indicators to its Reference Data Feeds KPVI News 6
Impact Investing Forum 2022
London. April 28-29, 2022.
NEW YORK, October 28, 2021 /PRNewswire/ — CUSIP Global Services (CGS), today announced that it has added Environmental, Social and Governance data attributes for municipal and corporate bonds to its data feed and desktop applications. ESG tags allow bond investors and bond issuers to instantly identify securities with ESG attributes and categorize them. This distinguishes them as sustainability, green, and social bonds. CGS determines ESG categorization based on review of primary offering documents. This is done as part of the CUSIP process. The CUSIP is used to identify and track securities in the U.S. bond markets and link them with the issuing entity. With this enhancement of its data feed and desktop products, CGS will append a text-based descriptor to the standard CUSIP ID for ESG bonds designating them either a green, social or sustainability-oriented bond. These new attributes cover corporate and municipal debt and are available at no additional cost. They will also include the verification third party if necessary. Scott Preiss, Global Head of CUSIP global Services and Managing Director, stated that ESG principles have been a top priority for investors and issuers alike. We are making it easy to track these securities through the financial system by clearly tagging them in the premarket environment and giving granularity about the type of ESG bond being effected. This is done using our industry-standard taxonomy. The average annual growth rate for the ESG segment of the bond marketplace has been 49% since 2016. The largest share of volume and deals have come from the U.S. market. ESG bonds are attractive for their social benefits as well as the cost-advantages that they offer to issuers. They have become a keystone of many investor portfolios. ESG bonds are a popular choice for investors due to their cost-benefits and social benefits. This new enhancement to CGS’s data feed and desktop applications will allow them to track ESG bonds across security master files, risk system and trading platforms around the world. For municipal bonds, CGS can also use the collaboration with ISS ESG (formerly ACRe Data), which links CUSIP municipal coder codes to its proprietary ESG scores. The ISS ESG scores are updated every quarter and provide additional ESG insight into US municipalities using a variety of criteria including socioeconomic, infrastructure and climate-based factors. CGS’ unparalleled experience in uniquely identifying entities and instruments to support efficient global capital markets is a key asset for the financial services industry. CGS’s 50-year-long focus on standardization has earned it a reputation as a trusted source of quality identifiers. This helps ensure that both front- and back-office functions run smoothly. CGS is regarded as the industry standard for reliable and timely reference data. CGS is also a founding Member and co-operates with the Association of National Numbering Agencies Service Bureau. This global security and entity identifier database contains over 34 million publicly and privately traded instruments. It was created by 116 national numbering authorities that provide ISIN coverage in more than 200 jurisdictions. CGS is managed by S&P Global Market Intelligence for the American Bankers Association (ABA). A Board of Trustees represents the voices of top financial institutions. For more information, visit www.cusip.com.About The American Bankers AssociationThe American Bankers Association is the voice of the nation’s $21.2 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $17 trillion in deposits and extend nearly $11 trillion in loans.For More Information:John Roderickjohn@jroderick.com631.584.2200 View original content to download multimedia:https://www.prnewswire.com/news-releases/cusip-global-services-adds-environmental-social-and-governance-esg-bond-indicators-to-its-reference-data-feeds-301410915.htmlSOURCE CUSIP Global Services