CUSIP Global Services (CGS) has enhanced its reference data feeds and desktop products by adding ESG data attributes for corporate and municipal bonds.
The new ESG tags will enable bond issuers and investors to instantly identify and categorise securities that contain ESG attributes, distinguishing them as green, social, or sustainability bonds.
ESG categorisation is determined by CGS upon review of primary offering documents as part of the CUSIP issuance process.
The CUSIP is a nine-character alphanumeric security identifier that captures the unique attributes of issuers and their financial instruments throughout the US and Canada.
In the US bond market, the CUSIP is used by investors to identify and track securities and link them with the underlying issuing entity.
According to CGS, with this enhancement of its data feed and desktop products, it will append a text-based descriptor to the standard CUSIP ID for ESG bonds designating them either a green, social or sustainability-oriented bond.
Scott Preiss, managing director and global head of CGS, says: “With total new issuance volume for green, social and sustainability bonds reaching nearly $500 billion in the first half of 2021 alone, it is clear that ESG principles have become a major priority for issuers and investors alike."
“By clearly tagging ESG bonds in the pre-market environment – and providing granularity on the specific type of ESG bond being issued – we are making it possible to seamlessly track these securities throughout the financial system using our universally recognised, industry standard taxonomy,” adds Preiss.
