Charting The Course: Sustainability In Fund Finance Through LMA's Guidelines

The impact on the margins or other direct economic effects may still be debated, but surely we all agree that the pressure coming from the regulator and investors is not going away. For example, SFDR is a set of EU regulations that require asset managers and other financial market participants to publicly disclose ESG information around their investment decisions and financial products, whether or not they are listed as sustainable.

Still, people long for concrete actions in the ESG jungle, not more regulation which keeps on coming our way in any case. While the interest in sustainability-linked loans is increasing also in fund finance, there are still many obstacles to accessing such funding compared to investment grade financing and other sophisticated structures, for example. In overall, the same Sustainability-Linked Loan Principles or the SLLP (published by LMA) also apply to fund finance, but LMA seeks to "provide practical guidance on the application of the