In the current political and environmental climate, the topic of sustainability and climate change has, literally and metaphorically (!), become a “hot” topic. This issue has permeated almost every industry and political agenda, with the provision of finance being no exception.
In March 2018, the Loan Market Association (“LMA”) published its “Green Loan Principles” (the “GLPs”), which aimed at creating standardization across the wholesale green loan market. The GLPs were born out of the findings of the Global Green Finance Council (the “GGFC”), and the trend to align the finance industry with green and environmental principles has continued with the LMA’s recent publication of the “Sustainability Linked Loan Principles” (“SLLPs”). The GGFC was itself founded in 2017 to bring together key associations operating in the green finance space. Founder members of the GGFC include the LMA, the Global Financial Market Association, the International Capital Market Association, the European Banking Federation, the European Covered Bond Council, the Institute of International Finance, and the World Federation of Exchanges.
Excerpted from The Banking Law Journal. To read the full article, click on the PDF linked below: