Deep industry-based research dimensions ESG opportunity for significant growth

Situation

ESG (environmental, social and governance) is now a critical focus for businesses across the globe. For the equipment finance industry, gaining an understanding the specific risks and opportunities posed by ESG factors for the industry is critical. As the focus on ESG grew exponentially during the pandemic, equipment finance companies across the industry members sought resources to understand the potential impact and develop their own ESG strategies.

Solution

The Alta Group conducted a research project to identify the challenges and opportunities industry members believe are the most critical across the ESG spectrum. Our research included interviews with captive, independent and bank owned equipment finance companies as well as investment banks, rating agencies and lenders to the industry. The resulting industry report identified key insights from the research and outlined specific ESG risks and opportunities. Featured in the research were several factors including a review of the definition and evolution of ESG; specific ESG industry market segment opportunities; illustrations of the potential impacts on funding and underwriting; an overview of relevant elements of the Infrastructure Investment and Jobs Act; background on the current state of disclosure requirements; and a framework for ESG value creation and execution.  The compelling takeaway was an enormous market opportunity in climate finance available to the equipment finance industry.

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