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ESG survey: is green and clean investing the future, or is all just hot air?

By Dan Davies, Acuris

Tuesday, July 02, 2019

Creditflux has launched a survey to analyse the growth of environmental, social and governance (ESG) investing within credit. 

The survey seeks to identify why ESG considerations have become more important within the credit industry. Further, it explores which areas of credit have a more mature approach to ESG and the biggest challenges ahead.  

At Creditflux’s CLO Symposium in May, we held a panel discussion around ESG criteria which delved into how, at times, it can be difficult to assess whether or not a borrower can be classified as ESG-friendly. PGIM’s John Di Paulo said on the panel that one company his firm was debating was operating in the subprime auto industry. “The cumulative loss in the pool was projected to be 50% - half of the people who take out car loans will pay it off and will have a mode of transportation,” he said. “Should you be supporting a firm where the credit underwriting process is no better than a coin flip?” Di Paolo added that PGIM decided against investing in the company.

Following on from this, the Creditflux survey will seek insights into how easy it is to define ESG within credit, which segment of the credit industry has made the most progress and the key question: why are fund managers launching ESG strategies?.

In mid-July we will release the results in the form of an infographic. Earlier this year Inframation, a sister product of Creditflux, conducted a similar survey and accompanying infographic. The results can be viewed here.

The raw data from the survey will be available to participants by contacting daniel.davies@acuris.com. The survey closes on Thursday.

Click here to participate.

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TAGS: Europe High yield bonds Leveraged loans North America ESG