Press Release

19th October 2022: The European Leveraged Finance Association (ELFA) and the Loan Market Association (LMA) have
published the second edition of their Guide for Company Advisers to ESG Disclosure in Leveraged Finance Transactions (the
Guide), first published in 19 January 2021 and available here.

ELFA and the LMA co-hosted a workshop in January 2022 bringing together leveraged finance borrowers, banks, law firms,
private equity sponsors and senior fund managers, among others, to exchange knowledge, discuss challenges and identify
solutions to meet the market’s growing need for more comprehensive ESG disclosure. Insights and key takeaways from this
workshop have been incorporated into the Guide’s second edition.

Senior fund manager workshop participants identified persistent gaps in ESG data and discussed with borrower participants
how this could be addressed. Private equity sponsor, legal and banking participants highlighted evolving practices in ESG
disclosure and contractual provisions. Workshop participants also discussed developments in the private debt market and in
ESG litigation.

Alongside the second edition of the Guide, ELFA has also published an Insights report summarising key takeaways and
insights gained from the workshop participants. The report is available here.

The second edition of the Guide includes two new chapters: ESG in the Private Debt Market, providing a high-level overview
of key themes and emerging issues relating to the adoption of ESG in private credit; and Guide to ESG Litigation, highlighting
potential legal risks presented by the increased volume of ESG-related transactions and disclosures.

The Guide is a comprehensive resource designed to be used in conjunction with ELFA’s ESG Fact Sheet Series (which now
covers 14 sectors) to support company advisers in their integration of ESG data and information into offering materials and
ongoing company reporting.

Sabrina Fox, CEO at ELFA, commented: “As ESG data availability in the leveraged finance market continues to increase,
lenders are keen to ensure that the data is reflected in ESG reporting by borrowers. ESG disclosure is critical to their
investment analysis, and market practices continue to develop and evolve. This second edition of the Guide provides an
important bridge between lenders and borrowers to support increased ESG disclosure in the leveraged finance market. The
Guide, together with the ESG Fact Sheet Series, which now covers 14 sectors and will grow to include more, provide essential
insights to collecting and disclosing ESG data, making them powerful tools for borrowers and their advisors.”

Gemma Lawrence-Pardew, Director Legal, LMA, commented: “Reliable and accurate ESG information is vital in order for
investors to channel capital into sustainable activities and companies. The availability of such data, however, remains a key
challenge for the market. With new sustainability disclosure frameworks being developed across the world to address this
problem, it is critical that borrowers and their advisors rapidly develop their knowledge and expertise in this area. We hope
this updated guide will provide helpful insights for advisors working in this area and will encourage ever-greater transparency
and disclosure of ESG information in the leveraged finance market.”