Strategies in focus:
- Syndicated Loans
- Multi-Asset Credit
- US and Europe CLOs (collateralized loan obligations)
With over 500 issuers across our credit portfolios, primarily sub-investment grade private issuers in Europe and North America, we recognise the need to be targeted in our engagement efforts. Given the nature of our credit strategies, we may engage directly with management teams or collaboratively with other lenders as part of a syndicate.
In the 12 months to 30 September 2022, ICG credit analysts engaged with more than 300 issuers across North America and Europe to seek more information and/or improvements on relevant ESG (environmental, social and governance) topics. As comprehensive ESG disclosures are still nascent among sub-investment grade private issuers, our key focus of engagement in many cases was on improving transparency on ESG matters, including disclosure of ESG performance and GHG emissions.
It is encouraging to see that 48% of issuers in six of our market value credit portfolios (as at 30 September 2022) measure and report GHG emissions – a significant increase from only 30% of issuers as at 31 December 2021.
Our requests for ESG information from issuers1:
Issuers were engaged on Environmental topics, such as climate change, natural resource use, and environmental compliance.
Issuers were engaged on Social topics, such as health and safety, workforce diversity and inclusion, and customer welfare.
Issuers were engaged on Governance topics, such as board diversity, business conduct, and exposure to high-risk countries.