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Credit trade associations join forces with PRI on ESG credit harmonisation

The Alternative Credit Council (ACC), the Loan Syndications and Trading Association (LSTA), and the Principles for Responsible Investment (PRI) are joining forces to align lenders and private equity sponsors to support material and consistent ESG data disclosure within the credit markets.

This effort was kicked off last year by the PRI – which is supported by the United Nations and represents signatories with over USD120 trillion AUM – to standardise ESG information shared during the investment process. 

The PRI worked extensively with a group of signatories to develop an ESG pre-investment due diligence template for target portfolio companies. The template maps the many existing ESG standards and frameworks rather than adding to them. Through this work, the PRI has been able to highlight common questions and synergies across different frameworks.  
The template is in its final stages and the PRI will release it later this spring, once feedback from PRI signatories, LSTA and ACC has been incorporated. It is ‘one size’ but investors can use it to fit their needs, depending on their role in the investment chain.

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