In 2021 the European CLO industry has been exceptionally busy, but is has also significantly developed in terms of ESG. Previously, we have witnessed the apparition of ESG negative screening provisions in EUR CLO new issuances and resets. While this year, we have seen managers introducing subjective ESG scoring across CLO portfolios as well as objective ESG reporting on CLO assets.

At Kartesia, since 2018 we continuously strive to improve our ESG tools for CLOs , including engaging with the larger market and use that engagement to promote ESG ideals.

This year, our Head of Structured Credit Division, Sharif Anbar Colas, was invited to join the CLO investor committee of the European Leveraged Finance Association (ELFA), with the objective to identify CLO investors’ requirements, facilitate discussion of general market progress and key issues, and contribute to the regulatory dialogue on the asset class. This initiative allows market participants to engage in the development of the CLO market through best practice guidance and the promotion of greater marketplace transparency. 
 

More news about ELFA: https://elfainvestors.com/initiative-committees/clo-investor/