ESG Junk Bond Issuers Get Warning After Burying Key Metrics (1)

Issuers of junk bonds with ESG labels need to do more to help investors make sense of the metrics they report, according to fresh industry guidelines.

Key performance indicators (KPIs) provide investors with critical information, the European Leveraged Finance Association and the International Capital Market Association said in a joint set of recommendations. “This reporting should not be a one-line item deeply embedded in a sustainability report or in an annual or quarterly report published after unaudited financials are presented to investors,” ELFA and ICMA said.

The warning comes as the market for sustainability-linked and green bonds enjoys a ...