Practical Law: What’s Market: 2024 Mid-Year Trends in Large Cap and Middle Market Loans – An Expert’s View
Elizabeth Yazgi, from LSTA, discusses ESG in the private credit space and outlines some of the market’s primary challenges.
Driving Enhanced ESG Transparency and Accountability
The ESG Integrated Disclosure Project (ESG IDP) Template provides borrowers with a harmonised and standardised means to report ESG information to their lenders. Use of the Template will streamline the disclosure process for borrowers and enable lenders to receive consistent data from sponsored and non-sponsored borrowers across the private and broadly syndicated credit markets. By providing a global baseline for ESG information requests, the Template will encourage more consistent reporting and support material comparison across the industry.
The ESG IDP Template offers advantages to all market stakeholders:
- For investors: the ESG IDP template will improve the consistency of disclosure to investors, enhancing their ability to identify industry-specific ESG risks (sourced from SASB Standards) in their credit portfolios and compare data across alternative asset managers more consistently.
- For borrowers: the ESG IDP template will provide borrower with greater certainty on the ESG indicators that are most relevant to lenders. This will allow borrowers to concentrate on these disclosures rather than respond to a multitude of similar questionnaires.
- For credit fund managers: the ESG IDP template will support the ability of credit fund managers to engage with borrowers and issuers on disclosure as well as develop efficient investor reporting processes.
Acknowledgements
The ESG IDP thanks Sanaz Raczynski of Kohlberg & Co. and Allison Spector of One Rock Capital for their valuable seminal work mapping existing industry reporting frameworks which supported the development of the ESG IDP template.
The ESG Integrated Disclosure Project would like to thank the following firms for their insights and contributions which have made the development of the ESG IDP template possible:
- Allianz Global Investors
- Angelo, Gordon & Co.
- Apollo Global Management Inc.
- Arcmont Asset Management Limited
- Ares Management
- Beach Point Capital Management LP
- The Blackstone Group
- Carlyle
- Chenavari Credit Partners LLP
- Churchill Asset Management
- CIFC Asset Management
- Credit Suisse Asset Management
- CVC Credit Partners
- Francisco Partners
- Hayfin Capital Management LLP
- HPS Investments Partners, LLC
- Intermediate Capital Group PLC
- Invesco Senior Secured Management, Inc.
- Kimura Capital LLP
- KKR
- M&G Investment Management LTD
- Newmarket Capital
- Oak Hill Advisors, LP
- Oaktree Capital Management
- Railpen
- Revolution Asset Management
- Tikehau Capital
- Virginia Retirement System
- Voya Investment Management
- White Oak Global Advisors
The ESG IDP would like to also acknowledge the valuable contribution of Oak Hill Advisors in the development of the ESG IDP Industry-specific Methodology. The ESG IDP Industry-specific Methodology is explained in detail here.
Learn More About the ESG Integrated Disclosure Project
ESG IDP testimonial – S&P Global
This video is a testimonial from S&P Global explaining why they have chosen to support the ESG Integrated Disclosure Project (IDP).
ESG IDP Overview
We provide an overview of ESG IDP. Learn more about who we are and the benefits of using our template.