The US Loan Syndications and Trading Association has released an ESG questionnaire for corporate borrowers.
The LSTA is the trade body for the $1.2 trillion institutional leveraged loan market in the US and its questionnaire is designed to improve information sharing on the part of corporate borrowers seeking capital. The LSTA says this is the first time that borrowers will have access to a standardized tool intended to help improve the dissemination of reliable ESG related information about their businesses to their lenders.
The Questionnaire was developed by the LSTA with input from a working group of several buy-side members and was developed to be applicable for borrowers across all industries, regardless of the current scope of their ESG efforts. Examples of questions include:
Do you have a formal ESG policy? If not, what are the intentions or concepts with respect to ESG that you have identified?
Which individuals have formal oversight of ESG issues at your company?
Is ESG a factor in management performance evaluation or compensation?
Do you adhere to any recognized ESG framework/standards?
What ESG-related business issues have you identified for your company’s business?
How is ESG performance being tracked?
What is your company’s approach to board, management and workforce composition?