The Sustainability‑Linked Loan Principles (SLLP), first published in 2019, provide a framework for this growing area of finance. A major revision in 2021 introduced clearer guidance, distinguishing between the selection of key performance indicators (KPIs) and the calibration of sustainability performance targets (SPTs).
The Social Loan Principles (SLP) were originally published in 2021 and provide a framework for what is recognized as an increasingly important area of finance.
The LSTA announced the publication of the 'Guide on Sustainability Linked Loan Principles (SLLP) in Fund Finance', providing practical guidance on applying SLLP in fund finance transactions.
Environmental, social, and governance (ESG) considerations are increasingly central to investment decisions, with investors, sponsors, and lenders placing greater emphasis on sustainability strategies and disclosures. In fund finance, interest in sustainability‑linked loans (SLLs) continues to grow, reflecting the market’s potential to advance ESG goals.
