AFME updates ESG disclosure guidance for European high yield market
The Association for Financial Markets in Europe (AFME) has published updated guidance on recommended environmental, social and governance (ESG) disclosure and diligence practices for the European high yield market. The guidance outlines sustainability-related factors relevant to capital markets offerings, including high yield bond and leveraged finance transactions, and provides an overview of the evolving regulatory landscape in Europe and the UK. It is intended to support ongoing work on ESG matters, particularly in relation to disclosure and diligence practices. An annex to the guidance includes a high yield ESG due diligence questionnaire, which provides a suggested framework for ESG due diligence in high yield and leveraged finance transactions.