Sustainability Linked Loans

Helping build Sustainability Linked Loan Programs

Sustainability linked loans

Companies can leverage their ESG performance to improve their bottom line and their company’s overall ESG performance through Sustainability Linked Loans (SLLs). SLLs give borrowers the opportunity to apply the loan toward general business purposes as the terms are tied solely to the borrowers ESG-related performance and not the use of proceeds or the projects financed. This flexibility has made the SLL a popular alternative to traditional capital raising and debt.

Learn more about our SLL service.

Key Benefits

Sustainalytics works with banks and companies to build the Sustainability Linked Loan Program. Our solutions are aligned to the Sustainability Linked Loan Principles and we work in-close collaboration with the borrower and the client to identify and track the ideal metrics that the Sustainability Linked Loan will be tied to.

Portfolio Analysis

Expand lending portfolios and meet firm-wide sustainability financing commitments

sustainability performance

Incentivize corporate clients to improve their sustainability performance

ratings

Leverage credible third party ratings and opinions to accelerate lending process

leader

Support positioning as sustainable finance leader

sustainable

Assist to meet public commitments made for sustainable finance

Engagement

Deeper relationship and engagement with customers

linked loans

Access to discounted loan rates

Sustainability efforts

Improve overall sustainability performance

Sustainable solutions

Demonstrate sustainability commitment to stakeholder

flexibility

Flexibility to use the funds for general corporate purposes

banking solutions

Deepen relationship and interactions with banks

Company assessment

Drive internal alignment across the business

Our Sustainability Linked Loans Offer 

 Opinions on KPI'sLicense our ESG Risk Rating
Part of company's strategy

Includes SLL Principles verification letter
Opinion based on ESG Risk Rating methodology
Independent and credible rating

Holistic view of overall ESG performance

Comparable across industries and companies

Annual update with change reports

Controversy alerts

Why Sustainalytics?

Market standard

A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

Award winning

Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

End to end

End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

Expertise

25+ Years ESG Expertise

350+ ESG research analysts across our global offices.

Largest second party opinion provider

Largest Second-Party Opinion Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

Related Insights and Resources

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Read how Nutrien, the world’s largest provider of crop inputs and services, used Sustainalytics' Socio-Economic Impact Report to quantify the social and economic impact of their sustainability efforts, particularly supplier diversity efforts.

Woman on laptop
Windstream’s Path to Understanding and Communicating its ESG Performance

This Customer Spotlight showcases how Windstream Holdings used insights gained from Sustainalytics’ ESG Risk Ratings and ESG Performance Analytics processes to enhance its ESG profile, expand company ESG initiatives, and improve ESG reporting and disclosures in line with industry leading practices.

Sustainability-Linked Loans 2021: The COVID-19 Effect, ESG Ratings & Continued Popularity

The sustainable finance market has seen an exponential increase in size and activity in recent years. Innovative offerings such as green, social, and sustainable bonds, green and sustainability-linked loans (SLLs), and most recently sustainability-linked bonds, have contributed to the market’s incredible growth. In 2020, boosted by varied financial needs and mainstream recognition of environmental, social and governance (ESG) parameters, global sustainable debt capital surpassed US$700 billion, a 30% increase compared to 2019. Part of this capital was channelled towards tackling the effects of COVID-19 as government agencies, supranational bodies and corporates borrowed money to support areas most affected by the pandemic, such as healthcare. This shift in fund usage in 2020 resulted in the rapid growth of social bonds and a commendable first year for sustainability-linked bonds.

Tracking the Progress on Gender Equality through Sustainable Finance

A key result of achieving UN SDG 5 - Gender Equality is global economic development. However, as women globally were disproportionately impacted by the COVID-19 pandemic, the financing of activities that contribute to the empowerment and socio-economic advancement of women and girls will need to be accelerated to meet the goal by 2030. One option for creating targeted gender investment is the development and issuance of Gender Bonds that specifically support the advancement, empowerment, and equality of women.

Related Products

  

ESG Risk Ratings

Identify your corporate sustainability risk with ESG research and data on more than 12,000 companies.

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Sustainable Banking Insights

Advance your financial institutions' approach to sustainable finance to better meet your investors and customers expectations.

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Sustainability Linked Bonds

Participate in sustainable financing and build credibility for your SLB with a second-party opinion.

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