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:

  • introducing guidance documentation around the role and responsibilities of a sustainability coordinator;
  • exploring the concept of transition finance and how existing sustainability frameworks can be amended to financially support a company's transition;
  • supporting the G20 sustainable finance working group in identifying efficient ways of integrating sustainability into the loan market;
  • exploring ways to support parties gathering information needed to make their various regulatory ESG submissions.

Latest News

The LMA launches guidance on the application of the Sustainability-Linked Loan Principles in real estate finance and real estate development finance

The LMA is delighted to announce the launch of a new guide to the application of the Sustainability-Linked-Loan Principles (SLLP) in real estate finance (REF) and real estate development finance (the Guide).

The Guide seeks to provide practical sector-specific guidance in relation to the application of the SLLP to REF and real estate development finance sustainability-linked loan transactions, setting out some of the key considerations for borrowers, finance parties and their respective advisors when looking to align any such transactions to the SLLP.



ESG Monthly Newsletter May 2022

On 4 May we launched the latest edition of our ESG Monthly Newsletter, which includes a video round-up of the latest ESG news from the LMA and across the market by Elliot Slater, together with the following:

  • What's Trending Now
  • What's Your View?
  • Briefings
  • Legal & Regulatory News

The LMA, APLMA and LSTA publish two new ESG guidance documents to support the development of green, social, and sustainability-linked loans

The first of these documents, 'Guidance for Green, Social, and Sustainability-Linked Loans External Reviews', is intended to provide best practice guidance on the external review process for borrowers, lenders, external reviewers and other stakeholders in the loan market.


The second guidance document, 'Guidance on Social Loan Principles', is designed to sit alongside the Social Loan Principles (SLP). This guidance is intended to provide greater clarity for market participants with regards to the requirements of the Social Loan Principles, and covers a number of frequently asked questions in relation to social loans.

Briefings

European Union: Wide-reaching proposals to make products more sustainable and protect consumers from greenwashing

The European Commission recently published a package of European Green Deal proposals in a bid to make sustainable products the norm in the EU.

In this briefing, Baker Mckenzie explores the package as well as its other aims such as to boost circular business models and empower consumers for the sustainability transition.

EU Platform on Sustainable Finance - Final Report on a Social Taxonomy

In this briefing, Travers Smith LLP discusses the Platform on Sustainable Finance's proposals for a potential Social Taxonomy which are outlined in its Final Report.

The briefing explores, amongst other things, the potential components of the proposed Social Taxonomy which include detailed substantial contribution criteria; 'do no significant harm' criteria and minimum safeguards.

Financing sustainable development: an African perspective

In this briefing, CMS focuses on Sub-Saharan Africa and discusses legal aspects relating to sustainable finance, as well as trends and developments that are relevant for financing sustainable development in the region.

These include the South African Green Finance Taxonomy as well as other Africa based sustainable finance initiatives and financial instruments.

UK Greening Finance Roadmap Overview

In this briefing, Allen & Overy provide an overview of the UK government's 'Greening Finance: A Roadmap to Sustainable Investing' document which was published on the 18 October 2021 and outlines the support available to the financial services sector in aligning with the UK’s net zero commitment and wider environmental goals.

Guernsey and green finance

In this briefing, Bedell Cristin provide an overview of some recent green finance innovations in Guernsey, including the use of Guernsey Green Funds.

FCA proposes mandatory climate-related disclosures for asset managers, life insurers and FCA-regulated pension providers

The UK's Financial Conduct Authority (FCA) has published proposals for asset managers, life insurers and FCA-regulated pension providers to be required to produce mandatory climate-change related disclosures. This Clifford Chance briefing explores the FCA's consultation published on 22 June 2021.

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.

Video Content

ESG Monthly Update - Green Newsletter

May 2022 Update hosted by Elliot Slater

What COP26 means for business

With Greg Brown, Kelly Sporn and Matthew Townsend – Allen & Overy

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Talking Taxonomies: Part 2 – Technical screening criteria and beyond

With Chinyelu Oranefo – CMS

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The Politics of ESG: Will action meet expectation?

With David Chmiel – Global Torchlight

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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

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

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.

Glossary of Terms

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