Insider Engage, is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Financial Institutions: KBRA’s Approach to ESG Climate and Reputational Risk Management

Risk Management and Assessment for Business
Blue Planet Studio/Getty Images/iStockphoto

Kroll Bond Rating Agency Europe (KBRA) has observed several instances of Environmental, Social, and Governance (ESG) considerations in a majority of our recently rated European broadly syndicated loan (BSL) collateralized loan obligations (CLO). The considerations impose additional eligibility criteria (screens) on the underlying portfolio, driven by investors and/or portfolio managers whose institutional ESG principles guide the investment in, or avoidance of, certain sectors or business activities.

This report highlights some of the negative portfolio screens we have observed in our rated European BSL CLO universe, the environmental and social risks we believe the screens aim to address, and some of the diversification considerations that managers may face when applying ESG filters to portfolios.



  • Managing inflation risk on both sides of the balance sheet

    Central banks have hiked their base rates in response to inflation. For insurers, both sides of their balance sheet have been left exposed to risks, impacting profitability as the cost of claims increase and the value of investments fall. While geopolitical tensions and inflationary pressures continue to pose a threat to the global economic landscape, how can insurers mitigate the risk of inflation-driven exposures?
  • The View from Bermuda: 1/1 Renewals 'Reset' The Reinsurance Market

    As the dust settles on a hectic 1/1 renewal season, the Bermuda market is catching its breath and looking forward to 2023. On a trip to Bermuda earlier this month, a number of senior leaders told Insider Engage that the renewals were chaotic and underwriters were very busy the week between Christmas and New Year’s, as rates, terms and conditions hardened dramatically.
  • An agenda for change at Lloyd’s

    Lloyd’s Market Association CEO Sheila Cameron is looking forward to an action-packed year: new regulation, digitisation and human resources development are all in the mix