Structured Finance Association Releases 2022 ESG Market Sentiment Survey Results
The second biennial survey reveals issuer and investor perspectives on ESG in relation to the structured finance market.
The Structured Finance Association (SFA) has released the results of its second biennial ESG Market Survey that tracks the extent to which environmental, social, and governance (ESG) disclosure metrics are incorporated, or are being considered for incorporation, within the structured finance market. Survey data from 2022 can also be compared to data from 2020, revealing how sentiment regarding ESG disclosure has evolved over the past two years.
“This report is a critical tool to understand and measure our industry’s evolving views and practices regarding ESG disclosure,” said Michael Bright, CEO of the Structured Finance Association. “As the leading voice for the securitization market, SFA will continue to engage with our stakeholders to ensure their perspectives are represented to policymakers and other market participants.”
The survey reflects input from 49 firms representing diverse perspectives across the market, including investors, ABS issuers, broker-dealers, rating agencies and banks.
Key takeaways follow. The report can be viewed in its entirety here.
- ESG disclosure and investing within structured finance grew 15% in the last 2 years, largely led by the investor community.
- “Client Demand” and “Alignment with Firm Values” continue to be the top ESG investor motivators.
- Issuer disclosure is growing thoughtfully, with 40% providing some ESG reporting and another 40% seriously considering or evaluating it.
- ESG credit disclosure is a fundamental imperative with collateral-level information being the most important.