Credit managers launch ESG disclosure tool

A group of alternative asset managers in the credit markets has announced the launch of the ESG Integrated Disclosure Project (ESG IDP).

The ESG IDP is aimed at enhancing transparency and consistency for both private companies and credit investors by providing a standard format for ESG-related disclosures. For investors, it aims to enhance their ability to identify industry-specific ESG risks in their credit portfolios and compare data across alternative asset managers.

The ESG IDP is an industry initiative bringing together leading lenders in the private and syndicated credit markets to improve transparency and accountability. It 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).

Founding partners include Apollo Global Management and Oak Hill Advisors. The ESG IDP is also supported by a coalition of market stakeholders including CDP, the ESG Data Convergence Initiative and the Loan Market Association.

Jeff Cohen, Head of ESG & Sustainability at Oak Hill Advisors and the inaugural Vice Chair of ESG Integrated Disclosure Project, stated: “We are excited to contribute to and support the ESG IDP, which applies a credit lens to the globally-recognized SASB standards to prioritize the subset of ESG factors most likely to be core to a company’s operations and, as a result, beneficial to lender underwriting. The ESG IDP aligns with sponsor interests and addresses questionnaire fatigue felt by companies.”