ESG

Excuse rights are a tool for LPs to avoid being committed to investments they would rather avoid on environmental, social or governance grounds, but they can create difficulties for fund managers. Winston Penhall of Reed Smith explains why.

In a recent survey, infrastructure’s 20 largest managers and investors were asked a series of questions, from how they were reducing their carbon footprint to whether they were divesting from fossil fuels. With some notable exceptions, the industry doesn’t seem to be rising to the challenge.

There is not sufficient reward for investments that benefit society, argues Ignacio Diez Torca of Trea Direct Lending, who says it’s time for government tax breaks.

The ‘responsible’ movement has gained momentum in emerging markets, but credit may be on the verge of replacing equity as the main driver of change. In outlining a potted history, David Creighton of Convergence explains why

More work is needed to make standardised data on ESG available for smaller companies in the leveraged loan markets.

As environmental, social and governance issues move from providing a competitive advantage to becoming essential for private debt firms, investors expect much more than just a box-ticking exercise.

Any savings the Parisian firm makes will be put into environmental projects, says CFO Philippe Audouin.

Relative to its peers in private equity and other asset classes, private debt is behind the curve on ESG. It is catching up, but with various approaches and motivations.

In light of a new research effort from Fitch Ratings, we take a snapshot of selected institutions’ perspectives on ESG in the structured credit universe.