Guidance for Green Social and Sustainability-Linked Loans External Reviews (Mar 2022)

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.


Become a Member

Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.

View Current Members

Our Partners

CUSIPFitch Group logoMorningstarRefinitiv-(March-2019)
Total Results: 

Sort by:

Good Friday…no SOFR?

Earlier this month the New York Fed announced that there will be no SOFR rate published on or for Friday, April 7th even though April…

CLOs: No Conflicts…But Big Problems

March 30, 2023 - On Monday, the LSTA submitted the first of three letters responding to the SEC’s Proposed Rule on “Conflicts of Interest in…

Recent Sustainable Lending Updates: Part 3

Recently the APLMA, LMA and LSTA published updated versions of the Green Loan Principles, Social Loan Principles, Sustainability-Linked Principles and related Guidance. The final versions…