Moody’s Corporation (NYSE:MCO) announced today that it will acquire a minority stake in SynTao Green Finance (STGF), a leading provider of environmental, social and governance (ESG) data and analytics based in and serving China.
STGF provides ESG data and ratings, green bond verification, and green finance solutions to financial institutions and corporates in China. The company also provides thought leadership on ESG to policy makers. STGF’s data covers publicly listed Chinese companies, bond issuers and macro ESG development trends. STGF was the first Chinese signatory joining the UN Principles for Responsible Investment (UNPRI) as a service provider and the first Climate Bonds Initiative Approved Verifier in China, and the sole Chinese green bond verifier within the first advisory council of Green Bond / Social Bond Principles by International Capital Markets Association (ICMA). It is also the founder of the China Social Investment Forum.
The investment in STGF aligns with Moody’s ongoing global commitment to promoting transparent standards for evaluating ESG risks. Locally, the investment strengthens Moody’s presence and engagement in China and its financial markets, with a focus on supporting long-term, sustainable growth and contributing to the healthy development of ESG markets.
“Since its founding, STGF has solidified its position in China as a local standard setter and leading domestic platform for ESG data and analytics. STGF’s China-specific data sets provide opportunities to enhance Moody’s global ESG research and data,” said Hao Shi, Managing Director, Country Manager for Moody’s China operations. “Together we will seek to leverage our respective strengths and capabilities to provide a range of solutions for investor and issuer ESG needs, including joint research, product development and technical cooperation.”
“In consideration of both global ESG standards and China’s specialized market characteristics, STGF has developed effective ESG methodologies dedicated to China and has accumulated a substantial amount of data,” said Peiyuan Guo, Chairman of STGF. “Moody’s investment will help STGF accelerate its data coverage, adoption and ability to further serve Chinese market participants. We are excited to partner with Moody’s and look forward to future collaboration.”
The deal complements Moody’s recent acquisitions of Vigeo Eiris, a leading global provider of ESG research, data and assessments, and of Four Twenty Seven, Inc., a leader in climate data and risk analysis.
The terms of the transaction were not disclosed, and it will not have a material impact on Moody’s 2019 financial results. The transaction is expected to close by early November 2019.
ABOUT MOODY’S CORPORATION
Moody's is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody's Corporation (NYSE: MCO) is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The Corporation, which reported revenue of $4.4 billion in 2018, employs approximately 13,200 people worldwide and maintains a presence in 44 countries. Further information is available at www.moodys.com.
For more information about Moody’s approach to ESG, visit www.moodys.com/esg.
Activating an environmentally sustainable future is a key focus of Moody’s approach to Corporate Social Responsibility. For more information visit www.moodys.com/csr.
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