ESG in Private Debt: Rising to the challenge

1st December 2021   |   2 minute read

Arcmont launches ESG whitepaper in conjunction with KKS Advisors

Arcmont has a long-standing history of incorporating ESG into our investment risk processes, having been a member of UN PRI since 2013 and contributed to the UN PRI guidelines on Private Debt investing. Consistent with our goal of delivering attractive risk-adjusted returns for our clients over the long-term, we aim to achieve the highest possible standards of responsible investing.

One of the key pillars of Arcmont’s ESG integration strategy is ESG advocacy, and as one of the largest players in the market, Arcmont’s continued advocacy is vital to help the industry move towards the creation of ESG integration best practices. As such, we’re delighted to share our ESG whitepaper with you: ESG in Private Debt: Rising to the challenge

Prepared in conjunction with KKS Advisors, the specialist global ESG advisory firm, the goals of this thought leadership paper are three-fold:

  • The first is to serve as an introduction to ESG integration viewed through the lens of a mid-market private lender. Section one discusses some of the key definitions and characteristics of effective ESG integration, and highlights the challenges of its implementation in private credit markets;
  • The second goal is to offer a framework for integrating ESG into the Private Debt asset class. Section 2 discusses ESG integration in Private Debt across four Competencies and three Phases using Arcmont’s practices to give tangible examples of advanced practices that other market participants might work towards; and
  • The third goal is to help the industry move towards the creation of ESG integration best practices by providing some insights and practices from Arcmont, as well as setting out expectations and trends for the future of ESG in Private Debt.

In an industry where expectations around ESG integration are outpacing the practices of many lenders, we felt it important to offer our insights in the hope of educating and inspiring the industry to cement its place as a key player in the creation of more sustainable financial markets. Both Arcmont’s and KKS’ aim is to encourage business and investment decisions to be made for the long term, maximizing the power of capital to achieve a positive impact.

We invite any financial market participant who shares this view to contact us to collaborate and make this goal a reality, and we hope you find this whitepaper to be a useful resource.

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