Institutional Shareholder Services subsidiary launches sustainability bond ratings

From Yahoo Finance: 2025-04-08 08:42:00

ISS Stoxx, a subsidiary of Institutional Shareholder Services, will issue Sustainability Bond Ratings for green, social, sustainability, and sustainability-linked bonds. The global market for these bonds reached $4.4 trillion in 2023. The ratings will help investors manage risk, fulfill reporting obligations, and research the impact of bond proceeds.

The ratings will assess alignment with international standards, environmental and social impact, and issuer sustainability strategy. A 12-point grading scale will be used, with “D-” as the lowest score and “A+” as the highest. Each bond will be evaluated on approximately 150 indicators based on issuance type.

The Climate Bonds Initiative reported that the global market for green, social, sustainability, and sustainability-linked bonds reached $4.4 trillion in 2023. Green bonds accounted for $2.8 trillion, social bonds $821 billion, sustainability bonds $768 billion, and sustainability-linked bonds $48.6 billion.

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