28 Jan 2021, 11:01Comments (0)
It’s a hot topic and seems to be tripping off everyone’s tongues: sustainability-linked loans and green loans,
writes Eleanor James of Trowers & Hamlins. But what are they, are they applicable to you, and why get one?
Sustainability-linked loans
The first thing to say is a sustainability-linked loan (SLL) is different to a green loan (GL), and therefore has different benefits and expectations as a result.
Sustainability-linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth. They are usually structured to incentivise a borrower to achieve predetermined sustainability performance objectives, ie reduction of internal greenhouse gas emissions or improvements to energy efficiency.