Credit | Investment Insight
May 01, 2023
The Evolution of ESG Credit at Apollo: From Managing Risks to Seizing Opportunities
The white paper builds on Apollo’s longstanding commitment to transparency and expertise in credit strategies by providing an in-depth look into the ESG credit platform’s foundation and development.
Joseph Moroney | Partner, Head of Sustainable Finance & Co-Head of Global Corporate Credit
Michael Kashani | Managing Director, Head of ESG Credit
Lori Shapiro | Associate, Director Senior Stewardship and Engagement Specialist
Amanda Gray | Principal, Senior ESG Research Analyst
Edward Brierley | Associate Director, ESG Research Analyst
Today, Apollo published our inaugural ESG Credit white paper: “The Evolution of ESG Credit at Apollo: From Managing Risks to Seizing Opportunities.”
Apollo has built an ESG credit platform that empowers our investment professionals, not only those with ESG in their title. Our integrated platform enables investment team collaboration with a dedicated ESG team to identify ESG risks and assess emerging ESG opportunities. We believe that a credible ESG platform is rooted in the fundamental investment process, aligning with our rigorous approach to finding value.
This white paper builds on Apollo’s longstanding commitment to transparency and expertise in credit strategies by providing an in-depth look into the ESG credit platform’s foundation and development. Key takeaways include:
- Apollo’s ESG framework aims to enable investment professionals to integrate ESG considerations into the investment process, as appropriate. It offers clients a clear understanding of the role ESG integration plays in our decision-making process.
- Apollo’s ESG Risk Rating framework in the credit space is ever-evolving; it is designed to capture ESG issues that are material to investments, where appropriate. The framework now encompasses a wide variety of sectors, teams, and investment disciplines.
- Apollo’s investment teams are equipped to assess an issuer’s ESG strategy, performance, risks, and opportunities at an early stage in the investment life cycle.
- We challenge the notion that investors can only engage on ESG issues through a shareholder vote. We believe that the credit markets in which Apollo participates can play a meaningful role and drive value creation.
- Apollo remains steadfast in our commitment to utilize our deep experience to provide capital solutions that drive the transition to a more sustainable future and expand opportunities for companies and communities.
- Apollo remains committed to participating in certain ESG initiatives that aim to advance ESG integration across the private credit markets. This is demonstrated by Apollo’s work as the inaugural chair of the ESG Integrated Disclosure Project (ESG IDP), a recent initiative in the private credit industry to harmonize ESG data collection.
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