LMA Hub

Sustainable Lending

Private finance has a critical role to play in catalysing the transition to a sustainable global economy. At the LMA, we are dedicated to promoting growth and innovation in sustainable lending practices, and supporting the loan market as new sustainable finance regulation emerges. Our ongoing initiatives include:

documentation projects, including the release of model provisions for sustainability-linked loans, together with work on the preparation of an accompanying term sheet and a template mandate letter for sustainability coordinators;
supporting the development of market practice, including the publication of updated versions of the Green, Social and Sustainability-Linked Loan Principles and accompanying guidance documents;
responding to regulatory proposals in relation to sustainable finance; and
attending and hosting various sustainable finance events.

Latest News

LMA Publishes Sustainability-Linked Loans - When Finance Rewards Sustainability Performance

LMA responds to European Commission call for evidence on amendments to the Taxonomy Delegated Acts

On 26 March 2025, the LMA submitted its response to the European Commission’s consultation on amendments to the Taxonomy Delegated Acts.

This consultation was released alongside the Commission’s Omnibus Proposal aimed at streamlining and reducing compliance burden associated with sustainability-related legislation in the EU. Whilst we welcome some of the proposed amendments, our response highlights certain areas where additional changes could be considered. Furthermore, our response emphasises the importance of careful consideration of the impact of the EU Omnibus Package to ensure that the proposals do not inadvertently add complexity, undermine the legal certainty needed to drive investment decisions and/or lead to an erosion of the quality or ambition of the underlying legislative and economic aims.

LMA Publishes Updated Green, Social and Sustainability-Linked Loan Principles

Today, The Loan Market Association, in collaboration with Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), published the updated Green, Social and Sustainability-Linked Loan Principles (‘Principles’) and corresponding Guidance documents (‘Guidance’). The Principles set out the core components for these labelled instruments, whilst the corresponding Guidance provides the definitive framework for structuring Green, Social, and Sustainability-Linked Loans.

Developed by an experienced working party of financial institutions, law firms and external review providers at the forefront of sustainable finance, the Principles and Guidance are designed to reflect market best practice, and provide a foundational tool to protect the integrity of the labelled loan market.

The past five years have experienced considerable growth in the labelled loan space and, as such, market practice is in a constant state of evolution. Accordingly, the Principles and Guidance will continue to develop in line with these changes, with the March 2025 updates reflecting the latest market developments.

LMA publishes its first-ever Sustainable Finance Insights Report on Greenwashing: Understanding and Navigating the Impacts for the Loan Market.

Today, we want to give a special shoutout to our dedicated members – along with participants from across the wider banking and private credit markets – for their invaluable contributions to the LMA’s first-ever Sustainable Finance Insights Report on Greenwashing: Understanding and Navigating the Impacts for the Loan Market. A special thank you to Hannah Vanstone (LMA) and Sukhvir Basran (King & Spalding) for their tireless efforts in bringing this report to life.

Read the report here.