Hogan Lovells and ELFA commence ESG partnership

The two organisations will work together throughout 2021 on a programme of events and publications designed to educate members of the leveraged finance community on the increasing centrality of ESG in investment decision-making. This programme will also reach out to the companies operating in the real economy which rely on leveraged finance to grow sustainable, responsible businesses, and work to improve the way such companies attract and communicate with ESG-focussed lenders and investors.

Co-Head of Hogan Lovells Impact Financing & Investing, Andrew Carey, said: “The firm has a long history of collaborating with clients to support projects and enterprises that promote positive social and environmental impact. Incorporating Impact Financing and Investing within mainstream finance is a priority for the sector, and for Hogan Lovells, and our ESG Partnership with ELFA provides us with a mutually beneficial platform to really drive change.”

Hogan Lovells was part of the collaborative effort that led to ELFA's publication “Guide for Company Advisers to ESG Disclosure in Leveraged Finance Transactions” (the “Guide”), jointly published by ELFA and the Loan Market Association (LMA). The Guide is designed to be used alongside ESG Fact Sheets jointly developed with the Principles for Responsible Investment (PRI) as part of the PRI’s credit risk in ratings initiative. The Guide outlines for companies and their advisers how to best integrate and present the ESG information contained in the ESG Fact Sheets into offering materials and ongoing company reporting.

Hogan Lovells will also co-host webinars and contribute to the ELFA’s Insights reports on important ESG topics, in addition to advising on updates of the Guide with the working group to ensure that it reflects evolving market practice in this area.

Hogan Lovells Impact Financing & Investing delivers innovative, efficient and scalable solutions to the challenges facing the impact economy, helping clients to stay ahead in this rapidly evolving space, and moving the market forward. It is a core part of the firm’s sustainability offering.

Co-Head of Hogan Lovells Impact Financing & Investing, Sukhvir Basran, added: “We’ve really seen interest in ESG ramp up across the financial markets, as rapidly increasing ESG regulation becomes more widespread, and its implications far-reaching. Now is the ideal time to help investors and the companies to which they lend turn this interest into action, so that ESG becomes not only a mainstream consideration, but expectation.”

Sabrina Fox, Chief Executive Officer of ELFA, commented: “We have observed a willingness to disclose ESG information, and bringing together borrowers and their advisers to develop guidance on where to focus efforts is key. Given the evolving regulatory framework, having a legal partner that is well versed in the technicalities of these regulations and how they translate in practice will help us move the needle on ESG disclosure, which stands to benefit all market participants.”