21 May 2024

Alcentra Publishes 3rd Annual Stewardship Report

Alcentra has published its third Stewardship Report, as part of our continued commitment to responsible investing and sustainable business practices.

Our stewardship activities are central to the way we operate, and directly support our overarching objective of delivering strong, long-term investment returns for our clients. The report – which can be found here – includes notable highlights from the firm’s 2023 activity, as well as milestones in Alcentra’s stewardship program. These include:

  • Publishing a number of thought leadership pieces including a white paper on the evolution of the Sustainability-Linked Loan market and two dedicated climate guides which were circulated to all borrowers and CLO managers we invest in. 
  • Intensifying our dialogue with all borrowers on emissions data to improve the availability of climate disclosure in the sub-investment grade market. 
  • Increasing the number of ESG-linked facilities across our Direct Lending platform to incentivise sustainable behaviour.
  • Enhancing the ESG & RI team through increased resources and investment in its operational efficiency.

Over the course of 2024, we plan to build on our strong responsible investment foundation. Our core focus will be on enhancing issuer engagement, reporting and internal ESG training to improve responsible investment operations across the company.

Tim Raeke, Head of European Credit Research, said “Our approach to stewardship focuses on the responsibility to our clients and wider stakeholders to oversee the creation of long-term sustainable value. Stewardship is a crucial part of our investment process and something that we seek to embed in the culture of the company. At Alcentra, we have taken great strides in integrating the Stewardship Code principles into our investment decision making. We believe by incorporating sustainability and corporate governance factors into our fundamental analysis, we will be able to create a more complete picture of the risks and opportunities facing issuers today.”

Ruth Davis, COO of Global Business Development, said “We have had a number of successes over the year which highlight our progress in ESG, including our strong PRI scores, the classification of our second Article 8 fund and continued industry thought leadership on ESG issues. Our focus now is on leadership and collaboration, as we continue to invest in the expertise and people that will allow us to enhance our processes and products to be more aligned with responsible investing practices.”

Vai Patel, Head of ESG, said “With evolving investor values, regulatory pressure and global challenges driving interest in ESG, stewardship has become a key pillar of Alcentra’s responsible investment strategy. Through engagement, asset managers like Alcentra can encourage companies to improve their impact on ESG-related issues, as well as outcomes for all stakeholders.

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