Global custodian BNY Mellon has launched an ESG data analytics service for collateral management.
The tool will be added to its electronic collateral schedule manager, Rule.
It draws on MCSI’s ESG ratings and allows users to incorporate these scores into their collateral eligibility decisions via the schedule manager.
In practice, this means collateral receivers and providers can agree that only securities with a certain ESG rating are acceptable as collateral, states BNY Mellon.
BNY Mellon’s announcement comes at the same time as investor communications firm Broadridge released an ESG performance dashboard which it says is designed for companies to better understand and monitor their ESG ratings.
According to Broadridge the product launch comes “as firms' ESG ratings become increasingly important to investors and shareholders, and achieving an accurate comprehensive understanding of those ratings has grown more complex and time-consuming”.