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.
Find out how the path of green finance has evolved, as well as our view on where the sustainable finance bond market is headed.
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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.
Expand lending portfolios and meet firm-wide sustainability financing commitments
Incentivize corporate clients to improve their sustainability performance
Leverage credible third party ratings and opinions to accelerate lending process
Support positioning as sustainable finance leader
Assist to meet public commitments made for sustainable finance
Deeper relationship and engagement with customers
Access to discounted loan rates
Improve overall sustainability performance
Demonstrate sustainability commitment to stakeholder
Flexibility to use the funds for general corporate purposes
Deepen relationship and interactions with banks
Drive internal alignment across the business
Sustainalytics KPI-SPT Assessment Service
At Sustainalytics we also offer a KPI-SPT Assessment. The assessment is an evaluation of the relevance and materiality of an issuer’s Key Performance Indicators (KPIs) and the ambitiousness of the associated Sustainable Performance Targets (SPTs) that can be considered as part of the potential sustainability-linked loan.
Non-public Assessment
The final report is a non-public assessment and can be used by the issuer teams only for internal purposes
Sustainalytics Methodology
Final report will be a detailed KPI-SPT assessment in line with Sustainalytics’ SLB methodology
Option to Extend
Issuer can extend the engagements to a full Second Party Opinion within 12 months
No SPO commitment required.
The internal report can be used to inform Framework development process.
Contract value
The assessment offered can be extended to a full SPO
Expedited Assessment
The KPI-SPT has a quick turnaround time
SPO LinkedIn instruments FAQ
What Linked Instruments SPO’s
Our Methodology
How to set up KPI’s and SPTs
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
800+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
Webinar Replay: Enhanced Assessment Framework for UoP SPOs
The enhanced assessment framework is designed to help you navigate the complexities of sustainable finance market by providing a rigorous, science - based approach that ensures your sustainability framework stands out in a crowded market. Our enhanced approach goes beyond labels to deliver clear, measurable insights into the real-world impact of your investments, enabling you to mitigate the risks of greenwashing, meet evolving transparency demands, and confidently demonstrate long-term progress.
ESG in Conversation: Shining a Light on Shareholder Rights
Tune in to hear experts share their perspectives on sustainable investing trends and the changing regulatory landscape, as well as changes in proxy voting activities, the influence of dual class share structures and their impact on say on pay votes.
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