European Leveraged Finance Association (ELFA)
Climate Impact & Sustainability Data (2019-2021, 2021)
Reporting Period: 2019-2021
Environmental Metrics
ESG Focus Areas
- Responsible Gambling
- Employee Well-being
- Diversity & Inclusion
- Data Security
- Compliance
- Supply Chain Risk
- Environmental Impact
Climate Goals & Targets
Environmental Challenges
- Problem gambling
- Underage gambling
- Supply chain risks
- Data security breaches
- Compliance with regulations
Mitigation Strategies
- Policies and processes to prevent excessive play, underage gambling, and money laundering
- Monitoring of supply chain risks
- Data security policies and processes
- Compliance programs
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: SASB, GRI, TCFD, CDP, SBTi
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Climate Goals & Targets
Environmental Challenges
- Inconsistent ESG disclosure across borrowers, even within the same industry.
- Difficulty accessing and using ESG data due to inconsistent formats and lack of standardization.
- Limited coverage of European leveraged loan borrowers by ESG data vendors.
- Time-consuming verification of methodologies and data normalization by investors.
Mitigation Strategies
- ELFA launching updated ESG Fact Sheets with KPI tables (Q1 2022).
- ELFA extending engagement to ESG data vendors to improve consistency and coverage.
- ELFA continuing engagement with borrowers, banks, and owners to improve ESG disclosures.
- Encouraging borrowers to provide public, comprehensive, and user-friendly ESG disclosures.
- Encouraging investors to engage with borrowers and data vendors.
- Data vendors adjusting methodologies to accommodate smaller leveraged finance borrowers.