Press release: Credit Market Participants Coalesce Around Global ESG Disclosure Initiative
Published: 27 July 2023
Credit Market Participants Coalesce Around Global ESG Disclosure Initiative
- Credit rating agencies and membership bodies confirm support for industry harmonization through the ESG Integrated Disclosure Project.
- ESG IDP Template updated to promote consistent global disclosure standards.
- ESG IDP fund manager supporters collectively manage $6tn+ in assets.
New York & London – 27 July 2023 – The ESG Integrated Disclosure Project (ESG IDP), a global industry initiative designed to harmonize environmental, social and governance (ESG) disclosures led by a group of leading alternative asset managers and industry bodies in the private and broadly syndicated credit markets, is pleased to announce several new milestones.
Most notably, three of the leading credit rating agencies, KBRA, Moody’s Investors Service, and S&P Global Ratings, have joined the ESG IDP Executive Committee. These organizations join leading credit fund managers and other industry associations as leading proponents of the initiative.
Support for the ESG IDP is growing amongst industry bodies, with the Asia Pacific Loan Market Association, the European Leveraged Finance Association (ELFA), and Investment Consultants Sustainability Working Group U.S. also confirming their support for the initiative. The ESG IDP welcomes their support and the recent statement from ELFA that they are exploring further collaboration with the ESG IDP to support harmonized disclosure.
Upgrades to the ESG IDP Template, which was launched in November 2022, have also been completed to capture additional data points and promote consistent global disclosure standards. The ESG IDP Template provides a framework for borrowers, lenders, and investors to exchange ESG-related data in a standardized format.
Registered supporters of the ESG IDP collectively manage $6tn+ in assets. Firms can register as a supporter of the initiative and download the updated ESG IDP Template at www.esgidp.org.
“We’re highly encouraged by the positive momentum for the ESG IDP less than a year from launch,” said Michael Kashani, Chair of the ESG IDP and Head of ESG Credit at Apollo Global Management. “Welcoming three of the leading credit rating agencies into our Executive Committee, and gaining support from entities like ELFA that help to streamline cross-border disclosure efforts, lends further credibility to this global initiative and improves our ability to make it accessible for all investors.”
Pat Welch, Chief ESG & Ratings Policy Officer at KBRA, added: “As a credit rating agency, we know how hard it can be to access detailed and comparable data. In the ESG space, data quality, consistency, and coverage present real challenges for the market. The ESG IDP is a very important step to enhancing this data in the private credit and syndicated loan space. We are excited to be a part of these efforts.”
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About ESG IDP:
The ESG Integrated Disclosure Project (ESG IDP) is an industry initiative bringing together leading lenders in the private credit and syndicated loan markets to improve transparency and accountability.
Our goal is to promote greater harmonization and consistency of disclosure of key ESG indicators by borrowers in private credit and syndicated loan transactions.
The ESG IDP was formed 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 PRI in co-operation with a group of leading alternative asset managers and credit investors.