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

LMA supports launch of ESG IDP integrated disclosure template

The ESG IDP template will enhance transparency and consistency for both private companies and credit investors by providing a standard format for ESG-related disclosures.

The template offers private companies a baseline from which to develop their ESG reporting capacity.  For investors, the ESG IDP template enhances their ability to identify industry-specific ESG risks in their credit portfolios and meaningfully compare data across alternative asset managers.

 

ESG Monthly Newsletter December 2022

On 1 December 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 Miles Doe, together with the following:

  • What's Trending Now
  • What's Your View?
  • Article Alert
  • Documentation
  • Legal & Regulatory News

LMA and CarbonChain release a joint article on the application of the Sustainability-Linked Loan Principles to trade finance

The LMA is delighted to announce the launch of a joint article with CarbonChain, exploring how the sustainability-linked loan product can be used in the global commodities markets to drive decarbonisation strategies as well as setting out five key steps for commodities traders and banks to consider.

 

LMA and ELFA publish updated Guide for Company Advisors to ESG Disclosure in Leveraged Finance Transactions

The LMA is delighted to announce the publication of its second edition of the Guide for Company Advisors to ESG Disclosure in Leveraged Finance Transactions, produced in conjunction with the European Leveraged Finance Association (ELFA).

The updated Guide incorporates two new chapters: ESG in the Private Debt Market; and a Guide to ESG Litigation, highlighting potential legal risks presented by the increased volume of ESG-related transactions and disclosures.

 

 

 

LMA releases a series of articles focusing on protecting the integrity of the sustainability linked loan (SLL) product.

This article sets out how parties can ensure that KPIs selected are able to withstand the scrutiny of the syndicate, and indeed the wider market and the press.

This article examines whether the fear of failing to hit sustainability performance targets may be stifling parties from setting the right level of ambition in the SLL market.

The article explores how the timeline for a transaction will inevitably be impacted when seeking to introduce a sustainability element to the deal.

Briefings

New diligence requirements for companies doing business in Germany

In this briefing, PwC explores the new supply chain due-diligence requirements that come into force in Germany in January 2023 and the implications for companies doing business in Germany.

UK Net Zero Strategy ruled unlawful leaving uncertainty over UK climate policy

In this briefing, Clifford Chance explore the implications of the recent High Court judgment which ruled that the UK's Net Zero Strategy, in-part, unlawful and in need of amendments by March 2023. This judgment follows a growing global trend in climate-related litigation, in which governments' and corporations' net zero commitments are being scrutinised in the courts.

SFDR and Taxonomy Regulation: Does more guidance mean more clarity?

In this briefing, Clifford Chance highlight the specific takeaways from three recent documents released by the European Commission; the European Securities and Markets Authority; and the European Supervisory Authorities respectively, on the implementation Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR) and the EU's Taxonomy Regulation ((EU)2020/852).

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.

Video Content

ESG Monthly Update - Green Newsletter

December 2022, Update hosted by Miles Doe

What COP26 means for business

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

banne_1080x4502x-100.jpg

Talking Taxonomies: Part 2 – Technical screening criteria and beyond

With Chinyelu Oranefo – CMS

851-Taxonomies-p2.jpg

The Politics of ESG: Will action meet expectation?

With David Chmiel – Global Torchlight

851x4792x_1.png

An introduction to nature-related risk

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

Spotlight-An-intrioductions-to-nature-related-risk.jpg

ESG trends in leveraged loans

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

ESG-Tends-leveraged-loans.jpg

Spotlight on the Social Loan Principles

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

spotlightsocialloanprincethumbnail.jpg

Talking Taxonomies: Part 1 – the search for balance

With Chinyelu Oranefo – CMS

851-thumbnails.jpg

Innovation in Acquisition Financing: Europe's first ESG unitranche

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

Innovation-Acquisition-Financing-851.jpg

Sustainability in the new world

Sustainability-in-the-new-world.jpg

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

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

sustaining_sustainability.jpg

You need to log-in to view this video.

Spotlight on Understanding the Challenge of TCFD Recommendations

Spotlight_on_Understanding_the_Challenge_of_TCFD_Recommendations.jpg

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

Spotlight_on_transition_finance_bridging_the_gap_between_green_and_brown.jpg

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

EU-taxonomy.jpg

You need to log-in and register to view this webinar.

Spotlight on Guidance to the GLP and SLLP

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

Spotlight-GLP-SLLP.jpg

Spotlight on Data - the missing piece?

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

Data-missing-piece.jpg