Navigating ESG
in the Private Debt Landscape

  • Global sustainable investment has reached USD 35,3 trillion in 2020, totaling almost 36% of
    combined AUM in the US, Canada , Europe, Australia and Japan. The United States and Europe
    continued to represent more than 80% of global sustainable investing assets during 2018 to
    2020 (GSIA, 2020)

  • One of the main challenges faced by asset managers is the lack of available ESG data from private companies, which often tend to be small medium enterprises (99.8% of all enterprises in the EU-27 as of 2021), currently not covered by any non-financial disclosure requirement.

    Proportion of sustainable investing assets relative to total managed assets in 2020

    By Region (GSIA, 2020)

    Canada
    61,8%
    Europe
    41,6%
    AUS-NZ
    37,9%
    US
    33,2%
    Japan
    24,3%

    ESG Investing Stats

    Addressing private debt investors’ unique challenges

    The lack of adequate data represents the main challenge when it comes to ESG integration in private debt investments.

    At Cardo AI,
    we inform companies’ ESG profiles through RepRisk assessments, which are based on a unique dataset of ESG controversies covering 190,000+ public/private entities and daily screening over 100,000 sources in 23 languages.

    But we don’t stop there.
    We are developing a model to provide an ESG rating for companies not assessed by RepRisk, in order to also meet EU SFDR (Sustainable Finance Disclosure Regulation) and Taxonomy requirements.

    Book a meeting with us


    ESG application on securitization products:
    The online webinar


    Things get even more complicated when it comes to incorporating ESG into securitization products, and it’s likely not a case that they make up only 4% of PRI signatories’ invested assets. A proper ESG evaluation of such products, would require a three-fold analysis looking at underlying collaterals, the transaction structure as well as the transaction parties involved.

    At CARDO AI we addressed the main challenges and opportunities that the securitization market is facing when it comes to ESG with a renowned panel of experts.

    Watch the live webinar to discover more.

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