Financing that takes into account environmental, social and governance (“ESG”) factors has been gaining prominence for several years now, so much so that ESG assets are expected to represent a third of global assets under management by 2025. Indeed, investors are increasingly seeking products that are not only financially appealing but also aligned with the broader ESG agenda.

The new recognised significance of ESG products, e.g., bonds, loans and securitisations, has attracted the attention of the market and also the European Banking Authority (“EBA”). Based on a recent EBA report, establishing a dedicated framework for sustainable securitisations would be premature. But it is certainly worth discovering how to get the most out of the already available or upcoming tools as an intermediate step to allow the sustainable securitisation market to develop to its full potential.

Our Debt Capital Markets Focus Team and ESG Team explore the EBA report’s findings here.