AFME has today published the first ever set of ESG guidelines for the European high yield market. The guidelines are intended to provide guidance on sustainable finance considerations for issuers and investors when leading or otherwise participating in offerings of non-investment grade notes (known as “high yield bonds”).
The guidelines make recommendations for considerations and practices to encourage transparency and consistency in disclosure, as well as recommendations for due diligence practices related to such transactions.
They are intended to assist the market by providing a framework for assessing relevant ESG factors, including:
- Disclosure and Diligence considerations;
- Impact of ESG factors on an issuer’s strategy and business model; and
- Exposure of an issuer to ESG risks, both at issuer and stakeholder level including sponsors and shareholders.
