A confluence of global events—from the pandemic to economic downturn to social unrest and extreme weather—has put environmental, social and governance (ESG) issues front and center for businesses in all industries, according to a new study, “The ESG Imperative: Understanding the Opportunities for the Equipment Leasing and Finance Industry,” released by the Equipment Leasing & Finance Foundation (Foundation). The study prepared by The Alta Group for the Foundation reviews key ESG elements, looks at their status in terms of strategy, and the risks and opportunities they represent for the equipment finance industry.
Among the details provided in this wide-ranging study are:
- A review of the definition and evolution of ESG;
- Specific ESG industry market segment opportunities;
- Illustrations of the potential impacts on funding and underwriting;
- Overview of relevant elements of the Infrastructure Investment and Jobs Act;
- Key insights gleaned from industry research interviews;
- Background on the current state of disclosure requirements; and
- A framework for ESG value creation and execution.
“Many equipment leasing and finance companies have not yet fully developed ESG policies and procedures, which can materially impact their future success,” said Tom Ware, Foundation Research Committee Chair. “This comprehensive study provides valuable insights and actionable steps from equipment finance industry leaders who have strategic and tactical experience with ESG issues. It is an indispensable resource to assist organizations in furthering their ESG efforts or, if they have not started them, to give them guidance on where to begin.”
Download the full report here.
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