STS is burden enough without shoehorning in ESG criteria

By Tom Brown
18 Feb 2020

With the environmental, social and governance revolution well under way, attention has turned to the securitization market after recent deals pushed the issue to the top of the agenda. There has been talk of retrofitting the ‘simple, transparent and standardised’ (STS) regulatory framework with a ‘green’ or ‘ESG’ category, but regulators should think twice before conflating both themes.

With the European Commission set to review the STS before 2021, market commentators told GlobalCapital they expect changes to be made around disclosure requirements with issuers having to report on ESG-related factors on all assets in a portoflio before satisfying the criteria.

STS was brought in as a way to ...

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