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Alternative Market Briefing

Alternative credit managers launch ESG integrated disclosure tool

Wednesday, November 09, 2022

B. G., Opalesque Geneva:

In order to address ongoing ESG disclosure challenges in the private credit markets, a group of alternative asset managers and industry bodies have launched the ESG Integrated Disclosure Project (ESG IDP) template.

The ESG IDP template is meant to enhance transparency and consistency for both private companies and credit investors. It will do so by providing a standard format for ESG-related disclosures.

Private companies will be able to use it as a baseline from which to develop their ESG reporting capacity. And investors will be able to use it to identify industry-specific ESG risks in their credit portfolios and compare data across alternative asset managers more consistently.

The template comes a year after the CFA Institute, a global association of investment professionals, published its first voluntary Global ESG Disclosure Standards for Investment Products.

Created by ACC, AIMA, LSTA, PRI, Apollo, Oak Hill, and others

The template is the creation of the ESG IDP, an industry initiative bringing together leading lenders in the private and syndicated credit markets to improve transparency and accountability.

The ESG IDP is led by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), the Loan Syndications and Trading Association (LSTA), and the United Nations-supported Principles for Responsible Investment (PRI).

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