While relatively new to the sustainable finance arena,
sustainability linked loans (SLLs) are increasingly garnering the
attention of businesses seeking to bolster their environmental,
social and governance (ESG) profile.
SLLs offer flexibility and the potential for real
economic benefits and positive ESG change, and we are seeing an
uptick in SLL financings both domestically and internationally. But
with opportunity comes responsibility, and there are many things
borrowers and treasurers need to consider to ensure SLLs can be
arranged, executed and managed successfully.
With a general move to social responsibility becoming the focus
of investors, shareholders and financiers, and in particular the
net-zero emission target year of 2050 on the horizon, we are
witnessing a significant growth in sustainable finance globally.
Momentum in the sustainable finance sector is growing as investors
and lenders look to shift their capital allocation to ensure a
