CUSIP has announced an alliance with the Climate Bonds Initiative, an international not-for-profit committed to mobilizing global capital for climate action.
This partnership aims to integrate green bond data attributes into CGS’s global data feed and desktop products, facilitating the identification and categorization of securities that align with environmentally sustainable growth principles.
CGS is renowned for its CUSIP identifier, a nine-character alphanumeric code that uniquely represents issuers and their financial instruments across North America. This system plays a crucial role in the U.S. bond market, helping investors to track securities and link them to the issuing entities. Enhancing its offerings, CGS will now include text-based descriptors for green bonds in its standard CUSIP IDs. The new features, offering detailed use of proceeds information and non-alignment specifics, will cover both municipal and corporate debt issued globally, at no extra charge to CGS customers.
The Climate Bonds Initiative works tirelessly to drive capital towards climate change solutions, establishing internationally recognized standards for green bonds that promote sustainable finance principles. This collaboration with CGS underscores a shared commitment to improving transparency and standards in green finance, marking a significant advancement in the accessibility of green bond data.
“Green, social, and sustainability-linked bond issuance reached approximately $1tn last year, highlighting a growing focus among corporate and municipal issuers on this market segment,” Scott Preiss, Senior Vice President and Global Head at CUSIP Global Services, said. The initiative reflects both organizations’ dedication to fostering a more sustainable financial landscape by leveraging Climate Bonds’ robust evaluation standards to meet crucial sustainable finance criteria.
In addition to this partnership, CGS and the Climate Bonds Initiative will collaborate on various research-driven initiatives, such as the CUSIP Issuance Trends report, which provides insights into debt and capital markets activity forecasts. This cooperation is poised to enhance standards and transparency within the green finance sector, with Sean Kidney, CEO of Climate Bonds Initiative, expressing enthusiasm for the joint efforts to improve the $130tn bond market’s data tools.
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