ELFA and PRI publish first sector-specific ESG fact sheets

The European Leveraged Finance Association, or ELFA, and the Principles for Responsible Investment, or PRI, have launched their first three sector-specific fact sheets outlining the environmental, social and governance disclosures for non-investment-grade issuers.

The first fact sheets cover telecoms firms, the paper and packaging industry, and debt collectors. A general ESG fact sheet for use by borrowers from any industry has been available since last year.

The disclosure checklists are designed to help companies and advisors standardize reporting on ESG criteria across the leveraged finance markets and to improve communication between investors and firms on ESG topics.

For the telecoms industry, the ESG fact sheet focuses on private and data security, online child protection, and governmental fines due to customer data. In the paper and packaging sector, the fact sheet covers issues such as environmental disclosure, especially around forest management, energy and water consumption, and waste. For debt collectors, the ESG criteria covered includes fair customer treatment and regulation, customer complaints and policies, and adherence with regulatory requirements and protections in place for vulnerable customers.

ELFA and PRI are now looking to create sector-specific ESG fact sheets for the chemicals, industrials, retail, technology and software, and towers and infrastructure sectors. A virtual workshop will be held Jan. 28 for borrowers and analysts in those sectors to discuss relevant ESG criteria.