AFME today publishes updated Recommended ESG Disclosure and Diligence Practices for the European High Yield Market.
The guidelines provide an overview of the current sustainability-related factors which are an increasingly urgent focus of investors in the context of capital markets offerings, including with respect to high yield bond and other leveraged finance transactions. It also provides an overview of the evolving regulatory environment across Europe and the UK, and intends to contribute to the work currently being undertaken with respect to ESG matters, particularly in relation to disclosure and diligence practices.
Attached as an Annex is the existing High Yield ESG Due Diligence Questionnaire. The Questionnaire is intended to provide a suggested framework for market participants’ ESG due diligence with respect to high yield and leveraged finance transactions. However, the scope of the questionnaire is not limited to such areas, and the underlying guidance should be helpful in any capital markets transaction.
We also acknowledge the ESG disclosure and diligence practices outlined in this document will vary and that parties will require some level of flexibility in following or applying these or any other such considerations.
