Revised Global Principles for Sustainable Securities Lending issued alongside opening signatories

The following organisations, in order to promote and embed Environmental, Social and Governance [ESG] matters and Sustainable Development Goals [SDG], in securities lending activities, have become opening signatories to these Principles: Blue Orca Capital, BNP Paribas Securities Services, Breakout Point, eSecLending, Financial Decisions, FIS Global, J Capital Research USA, Minerva Analytics, Muddy Waters Capital LLC, Nest Corporation, NN IP, PGGM, Pierpoint Consulting, Sharegain, Standard Chartered, Sumitomo Mitsui Trust Bank, and Quintessential Capital Management.

Global PSSL is a holistic and unifying market standard as it considers the interests of the whole community that shapes the securities lending market. Furthermore, it serves to promote good governance, transparency and responsible working practices. The final principles are a continuation of a research and implementation programme which commenced with beneficial owners in 2018. Since then, Global PSSL has received feedback from the whole community of practitioners, including those with differing viewpoints. The engaged organisations included: pension funds, asset managers, sovereign wealth funds, custodian banks, triparty agents, prime brokers, hedge funds, long and short activists, financial advisors, consultants, ESG experts, trade associations and academia. Global PSSL has maintained close relations with several central banks, regulators and international organisations in order to keep them apprised of developments.

Global PSSL has received significant funding from the Economic and Social Research Council (ESRC), part of UK Research and Innovation, through the Sustainable Finance –  Law –  Stakeholders (SFLS) Network at Exeter Law School.

Grant request was designed based on earlier engagement with stakeholders shaping values-based banking, green bonds and sustainable project finance as well as initial contacts, research and discussions with staff from the World Bank.  

Dr Radek Stech, Founder and CEO of the Global PSSL community interest company (CIC) and a senior academic at the University of Exeter 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.”

He added: “However, we cannot rest on our laurels as we recognise there is much work to be done in relation to the Principles’ implementation, updates and the wider future uptake.”

Professor Julia Black, of the London School of Economics and Political Science, added: “Global PSSL is an important initiative which aims to introduce ESG principles into the practice of securities lending.  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.”