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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 Transition Loan Principles, Accompanying Guidance and Updated Sustainable Lending Guidance

On 3 November 2026, the LMA published the Transition Loan Principles and accompanying Guidance, building on the 2025 Guide to Transition Loans. The LMA also published updated Guidance on the Sustainability-Linked Loan Principles, including a new question focused on what KPIs should be set to support an effective decarbonisation-focused, transition-themed SLL.

In addition, the Guidance on the Green and Social Loan Principles has been consolidated into a single document and expanded to include further guidance on the application of the Principles to revolving credit facilities.

Sustainability, Risk and Value in Mainstream Lending

On 19 October 2026, the LMA published Sustainability, Risk and Value in Mainstream Lending, an article examining how sustainability-related factors can influence lending decisions, asset values, resilience and access to finance. The article considers the practical implications for credit assessment, refinancing and portfolio strategy, and highlights the importance of focusing on financially material factors.

LMA Publishes the Practice Note on the Application of the Sustainability-Linked Loan Principles to SMEs with Accompanying Insights Report

On 22 September 2026, the LMA published its Practice Note on the Application of the Sustainability-Linked Loan Principles to SMEs. The publication provides practical guidance on the application of the Sustainability-Linked Loan Principles (SLLP) in SME lending, recognising the particular characteristics and challenges that may arise in SME contexts. It is intended to support the consistent and credible application of the SLLP while maintaining alignment with the existing principles framework.

In addition, the LMA has also published Scaling Sustainable Finance for SMEs: Insights from the Loan Market, which sets out the market context and survey findings that informed the development of the guidance.