As the demand for standardized and transparent ESG disclosure rules continues to grow, a group of alternative asset managers launched a template for ESG disclosure. The ESG Integrated Disclosure Project template was created by the Alternative Credit Council, the private credit affiliate of the Alternative Investment Management Association, the Loan Syndications and Trading Association (LSTA), and the United Nations-supported Principles for Responsible Investment. The Alternative Credit Council includes 250 asset management firms that manage over $600 billion of private credit assets. LSTA is a not-for-profit trade association that includes commercial banks, investment banks, broker-dealers, hedge funds, and other institutional lenders. The template intends to provide a standard format for ESG-related disclosures and offer companies a baseline from which they can develop their ESG reporting capacity. It was designed to be completed by borrower companies and shared with their lenders. Jiří Król, global head of the Alternative Credit Council, said the following in a statement, “By simplifying and harmonizing existing market practices, this new industry-led initiative will reduce the burden on borrowers while improving the materiality and comparability of ESG disclosure for investors.”
Finsum:A group of alternative assets managers created an ESG disclosure tool that offers companies a baseline to develop their own ESG reporting capacity.
- private credit
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.