A new rating provided by data and technology solutions provider ISS STOXX will help investors better assess the impact and risk of green, social and sustainability bonds. This will cover bonds issued by both corporate and sovereign entities. “The volume and complexity of labelled bond issuances has increased significantly in recent years, against a backdrop of disparate regulatory and market reporting standards,” said Till Jung, Head of ESG at ISS STOXX. He added that this “differentiated offering” means that investors will be able to better compare the material sustainability risks and opportunities of labelled bonds from the moment that they are issued. “This is significant as it is not just building an assessment based purely on general elements from the issuer’s activities and performance,” said Jung. The new rating supports a wide range of investor use cases, from risk management reviews through to helping investors meet their reporting obligations. The assessment is aligned with international standards and guidelines on labelled bonds, such as those issued by the International Capital Market Association and the UN Sustainable Development Goals.
