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.
Latest Insights
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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
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
500+ 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
Does ESG Impact Valuation? Answering the Most Common Questions About IPO ESG Assessments
Companies working toward an IPO increasingly understand that having an effective ESG strategy is an important strategic consideration for investors and regulators alike. This FAQ answers the most common questions about what an ESG assessment involves.
What’s Happening in Sustainable Finance: The Shifting Regulatory Landscape, Reporting on Impact, Focus on Biodiversity, and More
In this month’s rundown of all things sustainable finance, we look at shifting regulations for investors, issuers and service providers, how issuers can measure the impact of their GSSS bonds, and the growing spotlight on biodiversity in financial markets.
Preparing for an IPO: How an ESG Assessment Can Make a Difference
For pre-IPO companies, having a plan to manage ESG issues and disclosures can make a difference in pre-IPO fundraising, valuation, building credibility in the market, and contributing to the overall success of an IPO. This blog post explains why.
The Next Frontier - Impact Reporting
The increasing urgency of the climate crisis has resulted in most investors demanding for more information about the extent to which their investments and portfolios are aligned with the 2°C Paris Agreement target. A recent Environmental Finance Report indicated that 90% of investors regard impact reports as ‘crucial’ and yet 75% of them said that current impact reporting practices are ‘inadequate’ and the lack of impact reporting deterred them from making further investments.
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