CUSIP Global Services Adds Environmental, Social and Governance (ESG) Bond Indicators to its Reference Data Feeds PRNewswireCUSIP Global Services Adds Environmental, Social and Governance (ESG) Bond Indicators to its Reference Data Feeds PRNewswireCUSIP Global Services Adds Environmental, Social and Governance (ESG) Bond Indicators to its Reference Data Feeds PRNewswire
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 and categorize securities with ESG attributes. This will distinguish them as sustainability, green, or social bonds. CGS determines ESG categorization based on primary offering documents. This is done as part of the CUSIP process. The CUSIP is a nine character alphanumeric security identification that captures the unique attributes and financial instruments of issuers in the U.S. and Canada. The CUSIP can be used by investors in the U.S. bond markets to identify and track securities and link them to the underlying 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. “With the total new issuance volume of green, social, and sustainability bonds exceeding $500 billion in 2021 alone, it is clear that ESG principles are a major priority for both investors and issuers.” 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. Since 2016, the average annual growth rate for the ESG segment has been 49%. 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 issuers. They have become a key component of many investor portfolios. This new enhancement to CGS’s data feed and desktop products will provide the critical reference data required to track ESG bonds across security master files, risk system and trading platforms around the world. CGS’ collaborations with ISS ESG (formerly ACRe Data) will provide additional ESG attributes for municipal bonds. This link provides proprietary ESG scores for US cities to CUSIP municipal coder codes. The ISS ESG scores are updated quarterly and provide additional ESG insights into US cities using a variety of criteria including infrastructure, socioeconomic, and climate-based factors. Note to the Editor: S&P Global has pledged to divest CUSIP Global Service in response to concerns raised by the European Commission about the pending merger of S&P Global with IHS Markit. For more information, please refer to the press release. CGS’ unparalleled experience in uniquely identifying entities and instruments to support efficient global capital markets is what the financial services industry relies upon. 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 a trusted provider of timely, reliable reference data and is a founding member of the Association of National Numbering Agencies Service Bureau. This global security and entity identifier database covers over 34 million publicly traded 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. Visit www.cusip.com for more information. About The American Bankers Association. The American Bankers Association represents the $21.2 trillion US banking industry. It is comprised of small, regional, and large banks that collectively employ more than 2,000,000 people, hold $17 trillion in deposits, and extend loans of nearly $11 trillion. John Roderick for more information
631.584.2200 SOURCE CUSIP Global Services Related Links http://www.cusip.com