Sustainability Linked Loans for Corporates and Borrowers
Services for Corporate Sustainability Linked Loans
About Sustainability Linked Loans
Sustainability Linked Loans or ESG Linked Loans are general corporate purpose loans used to incentivize borrowers’ commitment to sustainability and to support environmentally and socially sustainable economic activity and growth.
The Sustainability Linked Loan Principles help borrowers align the characteristics of a Sustainability Linked Loan (or ESG Linked loan) to the guidelines under the following core components:
Relationship to borrower’s overall CSR strategy
Measurement of borrower’s sustainability against sustainability performance targets
Publicly available reporting of sustainability performance targets
How can an ESG rating support your sustainability linked loan?
Banks and other lenders often look to an issuer’s ESG rating as a way to structure loans. The bank may choose to peg the loan's interest rate to the company's ESG rating or use the ESG rating as a performance target within the terms of a loan.
Issuers can potentially lower the cost of borrowing by working with banks that integrate a company's sustainability performance into their lending criteria. See a Sample ESG Summary Report.
Sustainalytics is a leader in ESG Ratings and Sustainable Finance Solutions
Sustainalytics is one of the world’s leading providers of ESG ratings and research. Investment managers, pension funds, banks and other financial institutions integrate our ratings on more than 12,000 companies into their decision-making processes. Corporate issuers often leverage their Sustainalytics ESG rating for marketing, investor relations and capital raising.
Sustainalytics is the largest external reviewer of Green Bonds, Social Bonds, and Sustainability Bonds with more than 300 second party opinions issued. Our dedicated and experienced team of Sustainable Finance experts have worked with business and government entities across geographies and sectors to ensure that bond issuances are aligned with investors’ interests and accepted frameworks.
We are a market leader in supporting sustainable finance, with over 40 companies using our ESG Rating for over 20 billion in ESG Linked, Sustainable Loans.
Working together on your Sustainability Linked Loan (ESG Linked Loan)
Our globally placed sustainable finance solutions team can help in the process of securing a Sustainability Linked Loan (or ESG Linked Loan). Our team of experts is ready to answer any questions that you may have:
Align your "loan" with the sustainability linked loan principles
With more than 300+ opinions in our portfolio, we are an experienced team of Sustainable Finance Experts. Issuers and lenders from around the world rely on Sustainalytics' services to help with their sustainability linked loan frameworks. Connect with our team to align your loan framework with the Sustainability-linked Loan (or ESG Linked loan) Principles as defined by the Loan Market Association.
Use the ESG Risk Rating as your Sustainability Performance Target (SPT)
Sustainalytics’ provides ESG-related risk assessments and ESG Ratings for more than 12,000 companies worldwide. Investors use Sustainalytics’ research and ratings for investment research, portfolio management, portfolio analytics, issuer engagement and more. Using the ESG Risk Rating for your loan needs showcases to lenders your
commitment to transparency and sustainability improvements.