Securities lenders publish sustainability standards

September 10, 2021

Global Principles for Sustainable Securities Lending (Global PSSL) has published its revised and updated standards for sustainable securities lending, alongside 17 opening signatories – including Minerva Analytics. 

Alongside Minerva, the opening signatories to the principles include BNP Paribas Securities Services, FIS Global, Nest Corporation, NN Investment Partners, PGGM, Standard Chartered, Sumitomo Mitsui Trust Bank, and Quintessential Capital Management. 

Nine new principles, aimed at bolstering ESG integration among signatories, include measures on sustainable finance development and alignment, diversity and inclusion, stakeholder involvement, and transparency. 

The principles have been developed based on feedback and engagement from a number of organisations, including pension funds, asset managers and sovereign wealth funds, following the initial implementation of the programme in 2018. 

Dr Radek Stech, founder and CEO of Global PSSL, said, “I’m delighted to welcome these opening signatories who clearly commit to advancing ESG in the whole securities lending value chain through the principle-based approach.  

“It enables market leaders to combine their industry know-how with cutting edge sustainable finance thinking to devise ways in which business can increase success while walking an ethical path. This latest issue of the Principles is a further demonstration of this positive collaboration.” 

However, he added that the wider business community cannot “rest on our laurels” as there is still much work to be done to implement the principles and encourage future uptake. 

Professor Julia Black, of the London School of Economics and Political Science, added that the updated principles were “the result of research and collaboration by leading academic and market participants, it is part of the wider drive towards sustainable finance and the integration of ESG considerations into every corner of financial markets”. 

Global PSSL has published two consultation papers over the summer. ‘Preparing securities lending for a more sustainable world’ sought to develop “unifying and inclusive” recommendations for sustainable securities lending throughout the value chain.

‘Strengthening sustainable finance with an interconnected collateral for securities lending’ – open for comments until 15 September – is concerned specifically with the types of collateral used in securities lending to fully incorporate ESG criteria.

Last Updated: 10 September 2021