Sustainable Lending

Promoting growth and innovation in the sustainable and green lending markets

Sustainable Lending

Sustainability is increasingly at the forefront of strategic planning. We are dedicated to promoting growth and innovation in the sustainable and green lending markets, and invite you to join with us in this global project. Our current initiatives include:

  • standardisation of various documentation and clauses to support ESG market;
  • developing standard set of material disclosure topics in conjunction with ELFA and the UN PRI;
  • supporting Green Finance Institute in identifying the role of finance in the retrofitting and development of low-carbon UK homes;
  • assisting the drafting of ISO's standards on green debt instruments; and
  • participating in various ICMA working groups.

Latest News

The LMA, LSTA and ELFA publish new ESG Diligence Questionnaire

On 4 June, the LMA, LSTA and ELFA published their first ESG Diligence Questionnaire: "ESG Diligence Questionnaire – Asset Manager". This Questionnaire is designed to be completed by asset managers and shared with investors.

This document looks to streamline the varied and often duplicative ESG information requests to which asset managers are routinely responding. The hope is that by having a Questionnaire that is developed based on the most common of those information requests this document can offer an “industry standard” which can be broadly accepted.

ESG Monthly Newsletter June 2021

On 3 June we launched the latest edition of our ESG Monthly Newsletter, which includes a video round-up of LMA activity in the ESG space by Gemma Lawrence-Pardew, together with the following:

  • What's Trending Now
  • What's Your View?
  • Documentation Update
  • Briefings
  • Virtual Events
  • Legal & Regulatory News

The LMA, APLMA and LSTA publish updated Sustainability Linked Loan Principles and accompanying guidance

On 27 May 2021, the LMA, APLMA and LSTA published updated Sustainability Linked Loan Principles and accompanying guidance. The key amendments seek to further promote the transparency and integrity of the sustainability linked loan product.

All transactions completed prior to 3 June 2021 will be exempt from following the revised SLLP, and instead should be reviewed in conjunction with the SLLP published May 2020.

Briefings

ESG CLOs: The opportunities and challenges

In this briefing, Matheson discuss the emerging trend of ESG-focused CLOs and some of the opportunities and challenges that may face market participants as they seek to bring their own ESG CLOs to the market.

Dasgupta Review: A Pathway for Action for the Financial Sector

The Green Finance Institute has launched the Dasgupta Review: A Pathway for Action for the Financial Sector, a set of 12 recommendations developed in partnership with the finance industry in response to the findings of the Dasgupta Review.

European Commission Finalises Taxonomy 'Technical Screening Criteria' For Climate Mitigation And Adaptation

The European Commission has finalised legislation containing the Technical Screening Criteria for climate mitigation and adaptation activities supporting the Sustainable Finance Taxonomy Regulation. This briefing by Clifford Chance looks at the finalised position.

Climate change litigation risk growing in UK

The growth of climate change-related litigation is becoming a risk which UK businesses of all types cannot afford to ignore. This briefing by Pinsent Masons discusses climate change litigation.

Resolving climate change disputes through arbitration

The flexibility of arbitration makes it an ideal forum to achieve swift decisions in disputes related to climate change, when underpinned with the right legislation. Read further in this briefing by Pinsent Masons.

Video Content

ESG Monthly Update - Green Newsletter

June 2021 Update hosted by Gemma Lawrence-Pardew

An introduction to nature-related risk

With Hannah Vanstone – LMA & Dr Rhian-Mari Thomas OBE – Green Finance Institute

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ESG trends in leveraged loans

With Gemma Lawrence-Pardew – LMA, Emma Norman – Invesco, Pathik Gandhi – Linklaters and Jacob Mi...

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Spotlight on the Social Loan Principles

With Rosamund Barker - APLMA, Tess Virmani - LSTA, & Hannah Vanstone - LMA

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Talking Taxonomies: Part 1 – the search for balance

With Chinyelu Oranefo – CMS

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Innovation in Acquisition Financing: Europe's first ESG unitranche

With Gemma Lawrence-Pardew – LMA & Alice Foucault – BaringsWith

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Sustainability in the new world

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Sustaining sustainability: have the foundations been laid for a green recovery?

From the LMA Syndicated Loans virtual conference (22-23 September 2020).

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Spotlight on Understanding the Challenge of TCFD Recommendations

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Spotlight on transition finance: bridging the gap between green and brown

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The EU Taxonomy – what is it and what might it mean for the loan market?

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Spotlight on Guidance to the GLP and SLLP

Rosamund Barker, APLMA; Tess Virmani, LSTA; and Gemma Lawrence-Pardew, LMA

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Spotlight on Data - the missing piece?

This webinar lasts approx 20 minutes and is an interview with Todd Arthur Bridges, Partner and Global Head ...

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Resources

Social Loan Principles (SLP)

The SLP aim to create a high-level framework of market standards and guidelines, providing a consistent methodology for use across the social loan market.

Green Loan Principles (GLP)

The GLP apply to loans where the fundamental determinant is the utilisation of the loan proceeds for Green Projects.

Sustainability Linked Loan Principles (SLLP)

Sustainability linked loans aim to incentivise the borrower’s achievement of ambitious, predetermined sustainability performance objectives

Glossary of Terms

Our green and sustainable lending glossary will aid transparency of terms in this rapidly evolving area of the market.