Streamline ESG Risk Management

The environmental, social, and governance (ESG) risk management concepts simplify the data transformation from credit agreements and reduce manual tracking by end users. These concepts provide users with the data points needed to manage interest rate risks and evaluate ESG key performance indicators (KPIs)

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Key Data Points Tracked

Existence of ESG Ratchet

This refers to the presence or absence of an ESG Ratchet mechanism within the financial instrument or agreement

ESG Interest Rate Margin | Adjustment Cap

Represents the reduction and increase cap to the interest rate margin in relation to ESG concepts

ESG KPI Setting Due Date Concepts

Signifies the deadline for defining or establishing Key Performance Indicators (KPIs) related to ESG

Third Party ESG KPI Setting

Indicates responsibility for defining ESG-related KPIs by third parties

Third Party ESG KPI Achievement Verification

Verifies the achievement or unsuccessful attempt at meeting ESG KPIs set by a third party

Exploring the Benefits of ESG Concepts

Efficiently Negotiate ESG Ratchet

Streamline the negotiation process for ESG Ratchet within agreements, ensuring smoother and more efficient transactions while managing risk associated with environmental, social, and governance policies

Easily Track ESG KPI Setting Due Date

Simplify the way you monitor due dates for Key Performance Indicators (KPIs) related to ESG policies, allowing you to stay on top of crucial deadlines and compliance requirements

Seamlessly Analyze Deal Performance
with ESG KPIs

Gain comprehensive insights on the performance of your deals based on Key Performance Indicators (KPIs) related to ESG policies, enabling you to make better data-driven decisions

ESG Ratchet

 

Exists

Indicates whether the ESG Ratchet mechanism is present or active

KPI Specification - Due Date

Specifies the deadline for defining Key Performance Indicators (KPIs) related to ESG policies

KPI Specification - Due Period from Close in Month(s)

Defines the time frame, in months, for setting ESG-related KPIs from the deal’s closing date

KPI Specification - Present in Credit Document

Denotes whether ESG-related KPIs are documented within the credit agreement or document

KPI Specification - Set by Third Party

Indicates whether a third party is responsible for defining the ESG-related KPIs

KPI Satisfaction - Third Party Verification Required

Highlights that third-party verification is necessary to confirm the satisfaction of ESG-related KPIs

Reduction Cap - Margin in Basis Points

Specifies the maximum allowable reduction in interest rate margin, measured in basis points, as part of the ESG Ratchet mechanism

Increase Cap - Margin in Basis Points

Specifies the maximum allowable increase in interest rate margin, measured in basis points, as part of the ESG Ratchet mechanism