The Green Loan Principles (GLP), Social Loan Principles (SLP), and Sustainability-Linked Loan Principles (SLLP) (collectively the “Principles”) in certain circumstances provide for the appointment of external review provider(s) to undertake external reviews in connection with entering into and executing green, social, or sustainability-linked loans.

This Guidance for External Reviews aims to promote best practice and is based on the ICMA 2021 Guidelines for Green, Social, Sustainability and Sustainability-Linked Bonds External Reviews (the “ICMA Guidelines”). It complements the Principles and takes into account similar guidance from other relevant standards bodies, regulatory commissions and trade associations. Aligning with the ICMA Guidelines as much as possible is desirable to promote consistency across debt (bond and loan) markets.

This Guidance provides voluntary guidance relating to professional and ethical standards for external reviewers, as well as to the organisation, content and disclosure for their reports. It has been developed by an experienced working group, consisting of representatives from leading financial institutions active in the global syndicated loan markets in consultation with a group of prominent external reviewers.

It is a market-based initiative and aims to provide information and transparency on the external review processes for borrowers, lenders, external reviewers and other stakeholders in the loan market. It strives to represent a consensus view from all parties involved and will be reviewed and updated periodically with feedback from the market.

Our entire list of Sustainable Lending Library is available here.