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).
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.
