CUSIP Global Services adds environmental, social and governance (ESG) bond indicators to its benchmark data feeds
NEW YORK, 28 October 2021 / PRNewswire / – CUSIP Global Services (CGS) today announced the addition of environmental, social and governance (ESG) data attributes for corporate and municipal bonds in its data feed and its products. office. The new ESG tags will allow bond issuers and investors to instantly identify and categorize securities that contain ESG attributes, distinguishing them as green, social or sustainable bonds. The ESG categorization is determined by CGS during the review of primary offering documents as part of the CUSIP issuance process.
CUSIP is a nine-character alphanumeric security identifier that captures the unique attributes of issuers and their financial instruments in the United States and Canada. In the US bond market, CUSIP is used by investors to uniquely identify and track securities and link them to the underlying issuing entity. With this enhancement to its data feed and desktop products, CGS will add a text descriptor to the standard CUSIP ID for ESG bonds, designating them as a green, social, or sustainability-focused bond. The new attributes, which cover municipal and corporate debt, are provided at no additional cost and will include the third-party auditor when available.
“With a total volume of new green, social and sustainable bond issues reaching nearly 500 billion dollars in the first half of 2021 alone, it is clear that ESG principles have become a top priority for issuers and investors, ”said Scott Preiss, Managing Director and Global Head of CUSIP Global Services. “By clearly marking ESG bonds in the pre-market environment – and providing granularity on the specific type of ESG bond issued – we allow these securities to be transparently tracked across the financial system using our Universally recognized and industry standard taxonomy.
The ESG segment of the bond market has experienced an average annual growth rate of 49% since 2016, with the largest share of volumes and transactions coming from the US market. Attractive both for their social advantages and for the cost advantages offered to issuers, ESG bonds have become the cornerstone of many investor portfolios. As the segment continues to grow, this further enhancement to CGS’s data feeds and desktop products will provide the critical baseline data needed to track ESG obligations in security master files, risk systems and trading platforms. in the whole world.
For municipal bonds, the new ESG attributes can be complemented by CGS’s collaboration with ISS ESG (formerly ACRe Data), which links the exclusive ESG scores of US municipalities to CUSIP municipal issuer codes. The ISS ESG Scores, updated quarterly, offer additional ESG information on U.S. municipalities using a number of criteria, including socio-economic, infrastructural, and climatic factors.
Note to editor: In response to concerns recently raised by the European Commission regarding the ongoing merger between S&P Global and IHS Markit, S&P Global has committed to divest CUSIP Global Services. Please see the press release for more information.
About CUSIP Global Services
The financial services industry leverages CGS’s unrivaled experience in unique identification of instruments and entities to support efficient global capital markets. The focus on standardization over the past 50 years has earned CGS its reputation as a trusted creator of quality credentials and descriptive data, ensuring that critical front and back office functions function. Regarded worldwide as the industry standard provider of reliable and timely reference data, CGS is also a founding member and cooperates with the Service Bureau of the Association of National Numbering Agencies (ANNA), a global database Security and entity identifiers for over 34 million privately traded instruments, provided by 116 national numbering agencies providing ISIN coverage in over 200 jurisdictions. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Global Market Intelligence, with a board of directors that represents the voices of major financial institutions. For more information, visit www.cusip.com.
About the American Bankers Association
The American Bankers Association is the voice of the nation $ 21.2 trillion the banking sector, which is made up of small regional banks and large banks that together employ more than 2 million people, protect $ 17 trillion in deposits and extend over nearly 11 trillion dollars in loans.
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SOURCE CUSIP Global Services