To aid potential investors, ELFA has called for a coordinated approach to ESG disclosure and analysis amongst leveraged finance borrowers.

By Paul A. Davies and Michael D. Green

Environmental, social, and governance (ESG) issues are playing an increasing role in the global leveraged finance market. As a result, borrowers who wish to access this market should consider paying closer attention to their ESG performance. The European Leveraged Finance Association (ELFA) has called for a coordinated approach to ESG disclosure among companies that wish to access leveraged loans, with the aim to help potential investors analyse ESG issues in a more consistent and uniform manner.

This blog post will explore the reasons why ESG factors are becoming such a crucial aspect of the leveraged finance sector and the response of ELFA to this development.