GASLA Launches New ESG & Securities Lending Framework
The Global Alliance of Securities Lending Associations (GASLA) has published an updated version of the Global Framework for environmental, Social, and governance (ESG) and Securities Lending (GFESL). This release reaffirms its dedication to offering market participants a useful tool for assessing securities lending concerning financial institutions' ESG policies.
The Pan Asia Securities Lending Association (PASLA) and the Risk Management Association (RMA) initially released the first version of the framework in May 2021, with the backing of the International Securities Lending Association (ISLA). This edition presented practical advice to securities lending market participants on handling ESG concerns within their operations.
The updated version of GFESL replaces the previous framework and was produced in partnership with the five-member associations of GASLA, which represent a significant proportion of the industry participants worldwide. It provides a comprehensive worldwide view of the intersection of securities lending and ESG considerations.
The updated GFESL offers insights into the five key areas where securities finance and ESG intersect, namely voting rights, collateral, lending over record dates, facilitating participation in the short side of the market, and transparency in the lending chain. The framework also includes an analysis of the legal and regulatory environment for each area and practical advice for lenders.