Lobby Groups Warn of Greenwashing Risk Amid Spate of ESG Deals

April 7, 2021, 9:57 AM

The ethical and environmental targets set for companies to secure lower interest rates on their debt financing are too easy and often amount to greenwashing, a pair of finance industry associations warned.

The European Leveraged Finance Association and Loan Market Association said on Wednesday that ESG targets need to be meaningful and ambitious, and shouldn’t be something that can be achieved on day one of syndication. ESG targets should also be relevant to the company, the report said.

The two major lobbying groups in Europe’s 750 billion-euro ($891 billion) leveraged-finance market are working together to produce guidance for how investors...

To read the full article log in. To learn more about a subscription click here.