Supporting sustainable finance with meaningful ESG data
Kestrel ESG Data is independently developed—encompassing principles of sustainability, material factors related to sector-specific best practices, and rigorous quality control.
Bond-Specific ESG Data
Meaningful, relevant, compliance-ready and easy-to-use ESG data at the bond level.
We apply our practitioner’s understanding of real-world best practices and a scientific approach to categorizing environmental and social impact.
Kestrel ESG Data
Original ESG Data for Fixed Income
We are proud to be at the leading edge, supporting sustainable finance with meaningful ESG data. We believe that being able to tell the difference between appearance and reality is key when considering ESG factors. That’s why we developed our latest product, Kestrel ESG Data, which provides impact transparency at the bond level.
We assess complex use of proceeds with a practitioner’s eye to:
- Provide quantitative and qualitative assessments
- Identify presence or absence of sector-specific best practices that are material to climate transition risk and impact
- Assess the adequacy of climate risk disclosures
- Align with United Nations Sustainable Development Goals and Targets
- Identify potential flashpoints in sources of repayment
- Identify unlabeled green, social and sustainability bonds
Services Available Now via API
Municipal bond primary market ESG data
Coming Soon via API
Municipal bond secondary market ESG data
Asset-backed securities ESG data
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Five Overarching Sustainable Finance Goals
We identify best practices in each sector that align with these goals while also taking into consideration the overarching environmental rules, anti-discrimination and civil rights laws, and permitting procedures that issuers are required to meet. We call these best practices “material factors” and they reflect the beneficial impact of a bond, including if it is consistent with a pathway toward low greenhouse gas emissions and climate-resilient development. When we review bonds, we identify whether sector-specific best practices are present in bond-financed activities.
Transition to a decarbonized economy
In every sector, there are ways to decarbonize and best practices to reduce greenhouse gas emissions. Our data reveals the presence or absence of these best practices which indicate if investments are transition-aligned.
Integrate resilient and sustainable design features
Infrastructure should be designed for resilience to diverse risks, ranging from coastal inundation, flooding, severe weather events, drought, and biodiversity loss. Energy efficient buildings are key to a low-carbon future.
Preserve, enhance, or restore natural capital
The UN has declared a biodiversity state of emergency. Depletion and lack of stewardship of water, soil, air, plants, and animals is widespread and is intimately linked to the changing climate. Ecosystem services, food security, human health, and community well-being all hinge on sound and restorative management of natural resources.
Promote an equitable society and a just transition
Inequalities are present in many forms in the US and will continue to incite hardships without comprehensive changes to policies and activities prioritized for financing.
Disclose activities, impacts and risks
Transparency ensures accountability to constituents and investors alike. Without adequate disclosure regarding financed activities and intentionality of those activities against sustainability targets, it is impossible to collaboratively overcome society’s most pressing challenges. Reasonable market participants consider climate risk to be material, but materiality includes more than direct impacts from extreme events that might affect an issuer’s ability to repay. Materiality also encompasses the long-term sustainability (durability) of the bond-financed infrastructure in the face of changing conditions, and the issuer’s efforts to plan for and mitigate those risks on the bond-financed activities.
Kestrel ESG Data
How Kestrel ESG Data Can Support Your Strategies
Trust Kestrel professionals to assess the sector-specific material ESG characteristics of each bond. Our assessment of climate-alignment and positive impact is based on academic research in environmental and social sciences, practitioners’ expertise, and Kestrel’s internal committee review. Check out our FAQs or contact us for customized data solutions.
ESG INTEGRATION IN BOND TRADING
Support your trade decisions with easy-to-interpret and actionable bond-level ESG data integrated directly into your models
ESG PORTFOLIO EVALUATION
Understand your portfolios from an ESG and impact perspective
Communicate the true ESG impact of your bond holdings with our impact reports
Identify bonds that meet your thematic investing goals
IDENTIFY UNLABELED GREEN, SOCIAL & SUSTAINABILITY BONDS
Discover which bonds align with green, social or sustainability bond standards, and leverage this knowledge to satisfy portfolio requirements or to better understand your current holdings
Our team of environmental and social scientists has a nuanced understanding of public finance. Our data is backed by the quality and integrity we have brought to our government clients over the last 20 years.
We work with market participants who share our commitment to building transparency through meaningful ESG data. Reach out to learn more about our high-quality data and customized solutions.