As the global sustainable finance market continues to expand, innovative financial instruments have emerged to meet changing needs. One instrument that's contributing to this dynamic market’s growth is the sustainability-linked loan (SLL). An SLL ties the borrower's loan terms to the achievement of ambitious sustainability goals. This can spur meaningful progress within organizations, while allowing borrowers to demonstrate their ESG commitments to stakeholders.
In this ebook, corporate borrowers will gain insight into this increasingly popular loan instrument and how it can support corporate ESG improvements. Readers will learn about:
- The key components of an SLL structure
- The importance of setting ambitious and material sustainability performance targets when entering into an SLL agreement
- The market expectations and guiding principles around SLLs, target setting, verification and reporting