Navigating the challenges and opportunities presented by the rapidly - growing and evolving financial markets for environmental, social and governance ('ESG') - related bonds and loans can be a daunting undertaking. In this issue of In the Know, Baker McKenzie lawyers share their experiences and insights.
FACT: ESG finance requires immediate attention - All market participants urgently need to develop or continue to develop ESG expertise, including, importantly, for ESG-related debt finance activities. Not only are there altruistic reasons to undertake these initiatives, but stakeholders, activists and governmental authorities, among many others, are demanding action.
FACT: ESG finance is here to stay - Urgent environmental, social and governance drivers across all industries and jurisdictions will fuel ESG-related growth into the foreseeable future and beyond, and finance initiatives provide a direct link to fund this growth.
FACT: ESG finance is still in its early days - Protocols are voluminous and confusing, ESG-related products continue to evolve, benefits are (currently) primarily non-economic, and risks remain uncertain.
So what do you need to know? In this issue we set out our top ten tips for ESG debt financings.