Quarterly Municipal Sustainability Monitor: 1Q26

Research evidence excerpt

Quarterly Municipal Sustainability Monitor: 1Q26

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Quarterly Municipal Sustainability Monitor

1Q26

Industry Overview

This is the final publication in our Quarterly Municipal Sustainability Monitor series. We plan 13 May 2026

to continue to provide coverage of this topic in our Municipal Weekly reports. Clients are Municipals

encouraged to reach out to us for any data requests. United States

1Q26 ESG issuance totaled $10.9bn, up 20% y/y Table of Contents

1Q26 all labeled muni ESG issuance totaled $10.9bn, up 20% y/y. 1Q26 ICMA-aligned

muni ESG issuance totaled $8.7bn, up 24% y/y. In 1Q26, the average CUSIP size of all Muni ESG issuance 2

labeled bonds was $13.1mn vs $6.1mn for all muni bonds issued during the quarter. Of Muni ESG fund flows 6

all YTD-26 labeled issuance, 49% had an ESG assurance provider or an external verifier. Muni ESG returns 7

For the ICMA-aligned bonds issued, that number was 62%. By sector, Gas Forwards Other muni ESG related data 8

issued the most ESG bonds for YTD-26. US drought monitor 8

Note: We display Bloomberg tagged muni ESG issuance data as “all labeled” and a subset FEMA disaster declarations tracking 9

aligned with certain International Capital Market Association (ICMA) recommendations. ERCOT demand 10

Bloomberg tags a bond issue as ESG if the net proceeds of the bonds are for green, US wildfires 10

social or sustainability purposes. That does not necessarily indicate that an issuer has US state net power generation mix 10

self-designated its bonds as such. To be considered ICMA-aligned, the bonds also must Muni ESG research compilation 11

be aligned with ICMA’s recommendations for project evaluation and selection,

management of proceeds and ongoing reporting. Note we update past data for any

John Lombardi