Foundation report by Alta urges action on ESG strategies

The Alta Group’s 2022 Insights newsletter in January cited three reasons why equipment finance organizations must embrace an environmental, social and governance (ESG) strategy this year. One, to retain talent. Two, because of the sheer amount of capital that has been unleashed into the sustainable market. And three, because ESG inspired innovation is creating exciting opportunities.

Now, the Equipment Leasing & Finance Foundation has released a wide-ranging report on ESG, prepared by industry experts Patricia M. Voorhees, Diane Croessmann and Gary W. LoMonaco of Alta.

The ESG Imperative: Understanding the Opportunities for the Equipment Leasing and Finance Industry unpacks the confluence of global events that have increased the urgency of developing an ESG plan. It provides actionable insights, so equipment finance companies won’t fall behind.

In a news release issued by the Foundation Feb. 10, Research Committee Chair Tom Ware noted that many equipment leasing and finance companies have not yet fully formulated the ESG propositions, policies, and procedures critical to their future success.

“The industry must move past its hesitancy quickly,” says Alta Co-CEO Valerie L. Gerard, who led the Foundation’s steering committee for the study and serves as a Foundation trustee. “In Alta’s advisory work for equipment finance companies we’ve seen how their customers, institutional investors, lenders and rating agencies are already incorporating ESG actions into the decision-making process. It’s even affecting recruitment and retention efforts as younger generations look to companies that more closely align with their beliefs.”

Foundation report provides framework

The Foundation study reviews key ESG elements, looks at their status in terms of strategy, and the risks and opportunities they represent for the equipment finance industry, according to the news release.  It includes:

• 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.

Download the Foundation report for free.

Listen to the Foundation Podcast: Episode 10 The ESG Imperative.

What is ESG and how is it relevant to your industry? This new episode of the Foundation Podcast shares insights on that question. Kelli Nienaber speaks to Patricia Voorhees of The Alta Group, one of the study’s authors, and Razi Amin of Aspen Capital, an influential voice in ESG.