Incorporating ESG into private credit

A new report from AIMA has said that a lack of standardisation is hampering the inclusion of ESG factors in the private credit markets.

The report, Financing The Economy, has been complied  by the Alternative Investment Management Association with the Alternative Credit Council and Dechert LLP. It says that inconsistencies in how ESG is reflected in investment decisions and the absence of standardised data is hindering the incorporation of ESG in the market. However, it also says the industry continues in its effort to establish a consensus on what constitutes relevant ESG metric.