Climate Action

Andrew Steel on the role of ESG in debt capital markets

Ahead of the Sustainable Investment Forum Europe 2020 taking place in Paris on the 10 March, we caught up with Andrew Steel, Managing Director & Global Head of Sustainable Finance at Fitch Ratings, to discuss the role of ESG in debt capital markets.

  • 30 January 2020
  • Rachel Cooper

Ahead of the Sustainable Investment Forum Europe 2020 taking place in Paris on the 10 March, we caught up with Andrew Steel, Managing Director & Global Head of Sustainable Finance at Fitch Ratings, to discuss the role of ESG in debt capital markets.

Q. What is driving the speed of change and level of interest in ESG in Fixed Income Capital Markets?

There are many factors leading to increased interest from the debt capital markets in ESG, including an overall desire to be seen as an industry that is promoting “doing good” as well as “doing well”.  Probably the biggest single change in the last two years has been the rapid acceleration of interest from asset owners receiving reports from asset managers about ESG performance of funds. The proportion of asset owners requiring an asset manager to have an ESG policy in place to meet their selection criteria is now approaching 90%.  At the same time the proportion of asset owners starting to monitor asset managers on ESG performance metrics has increased to around 80%.  This has resulted in a marked acceleration in AMs integrating ESG considerations into their investment processes over the last two years. 

 

Download the full interview along with other industry leader interviews by clicking here.

 

Andrew Steel will be sharing further insights at the Sustainable Investment Forum Europe 2020, organised in Partnership with UNEP-FI, to an audience of 400 asset owners, ratings agencies, banks, UN and Government policymakers, investors, development banks, think tanks, and NGOs committed to driving forward the sustainable finance agenda. Find out more here about the event here.