ESG Integrated Disclosure Project

Overview

The ESG Integrated Disclosure Project (IDP) is an industry initiative to improve transparency and accountability in the private credit and broadly syndicated market space.

The Alternative Credit Council (ACC) co-founded the ESG IDP and serves as the project's secretariat, managing the executive committee jointly with the Loan Syndications and Trading Association (LSTA) and the United Nations Principles for Responsible Investment (UN PRI). To download the template, become a supporter, and access additional resources visit www.esgidp.org

The goal of the project is to promote greater harmonisation and consistency of disclosure of key ESG indicators by borrowers.  This goal is primarily achieved through broad adoption of the ESG IDP Template, a reporting tool that represents a proportionate set of questions that are designed to solicit a global baseline of information from private companies.

What are the key benefits of the ESG IDP Disclosure Template

The ESG IDP Disclosure Template provides a global baseline that supports a harmonised approach to ESG disclosure between borrowers, credit fund managers and investors.

• For investors: it improves the consistency of disclosure on their investments, enhancing their ability to identify industry-specific ESG risks and compare data more consistently. 
• For borrowers: it helps them to distinguish the most relevant ESG indicators to investors and reduces the operational burden of responding to multiple disclosure requests.
• For credit fund managers: it supports their ability to engage with borrowers and issuers on disclosure, and develop efficient risk management and investor reporting processes.

What is included in the ESG IDP Disclosure Template?

The Template is divided into three sections:

• Introduction tab: This provides users with instructions and explanatory notes on how to complete the Disclosure Template.
• General tab: This includes questions relevant to all businesses to provide a baseline assessment of the borrower across the most important ESG indicators.
• Industry-specific tab(s): This includes three to five priority questions that are particularly relevant to borrowers operating in specific industries.  These industry classifications are derived from the industry classification format developed by SASB.

Governance of the ESG IDP

The ESG IDP was formed in November 2022 by the Alternative Credit Council (ACC), the Loan Syndications and Trading Association (LSTA), and the United Nations-supported Principles for Responsible Investment (PRI) in co-operation with a group of leading alternative asset managers and credit investors.

If you would like to learn more or become a supporter of the ESG IDP get in touch with your usual ACC contact or reach us at [email protected]