ESG securitisation: Taking stock

A significant amount of capital is expected to be made available for investment in ESG transactions in the coming years, and growth in this area continues at breakneck pace. There has been an associated explosion in the amount of legislation aiming to address ESG-related concerns, as regulators seek to create frameworks to help achieve ambitious ESG-related objectives. Sector-specific legislation is still being developed, however, and the array of existing rules are not yet harmonised.

This note outlines the issues that should be considered when originators and sponsors structure an ESG securitisation. While our focus is primarily on the ‘here and now’, we have also outlined potential future legislative developments.