Client Overview
The client, a large-scale investment banking division of a global bank, prioritizes sustainable finance by delivering impact- driven investment products, and facilitating the transition to a low-carbon economy through green and sustainable bond issuances.
Business Challenge
The client, serving as the lead manager for a large number of equity and bond issuers with issue sizes ranging from $100 million to several billion dollars, needed a comprehensive ESG evaluation of publicly listed and privately held issuers to:
- Ensure eligibility for inclusion in ESG-focused indices
- Align with asset owners’ sustainability criteria
- Maintain strict confidentiality while operating under tight deadlines
Inrate’s Solutions
Inrate provided the client with access to its ESG Impact Ratings and ESG Screening data via its client portal, ensuring easy accessibility and usability. The data was generated on a bespoke basis, as the list of issuers was not part of Inrate’s existing universe. The specific offerings provided included:
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ESG Impact Ratings with limited and reasonable reliance on company-reported data while going further by evaluating the full life cycle impact of a company’s products and services
o A comprehensive long report containing numeric and alphabetic ESG Impact Grades and Subgrades
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ESG screening offering a comprehensive evaluation of controversies, going beyond surface-level assessments, allowing clients the flexibility to prioritize specific categories of adverse products, controversy indicators, etc. based on their preferences. Customized screening based on the ESG eligibility criteria and specific sub-products or thresholds set by the ESG Index providers:
o Controversy scores from “minimal” to “very high” (5 grades)
o Exclusions: Product Screening
o Exclusions: Critical Activities o Indication of whether the issuers are considered non-investable according to SVVK-ASIR recommendations o Review of the implementation of the UNGC principles by the issuers
Outcome
- Seamless execution of equity and bond issuances within established timelines
- Effective inclusion in the ESG index by meeting the criteria
- Enhanced client reputation in sustainable finance advisory services
Value Delivered
Inrate’s ESG data and analysis empowered the client to:
- Access timely, high-quality ESG insights for informed decision-making
- Ensure timely execution of equity and bond issuances aligned with ESG criteria
- Strengthen its position as a trusted advisor in sustainable finance