ISLA unveils action items to position securities lending on ESG

The International Securities Lending Association (ISLA) published a report jointly with Allen & Overy looking at the role of lending in the transition to a sustainable economy and how ISLA is supporting that process. One of the action items identified in the report is that ISLA will work with members and industry stakeholders towards development of a best practice standard on creating a common understanding of ESG objectives in the context of securities lending arrangements.

With 2021 set to be the year of economic recovery and with an immense focus on the global sustainability agenda, accelerated as a result of Covid-19, the paper, “Framing securities lending for the sustainability era”, explores the real meaning of sustainability within the securities lending industry and the means by which it can continue to operate effectively, and in a synchronised fashion, with investors’ ESG philosophies and regulatory requirements in mind.

Source: ISLA

“ESG principles are increasingly being integrated into the whole investment process. Securities lending should not be left out of this. All securities lending programs are therefore strongly encouraged to incorporate these principles into their lending activities,” said Matthew Chessum, investment director of Liquidity Management for Aberdeen Standard Investments and co-chair of ISLA’s Beneficial Owner forum, in the report.

Access the full paper

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