ESG and European Structured Finance Year in Review: A Shift in Tone

This commentary provides a comprehensive review of our ESG-focused studies related to the European securitisation market this year, showing the intertwining path of credit and ESG factors.

Key highlights include the following:

-- Climate risk is becoming the most significant and pressing ESG concern.
-- ESG initiatives are moving beyond the "ESG" acronym to establish a more inclusive identity and to avoid negative association with the acronym itself.
-- Esoteric assets and technological progress are enhancing adherence to the environmental factor by fostering progress in climate and energy transition efforts.
-- The topic of ESG is still relevant at its core, but the dynamics around it are evolving.