The trade finance industry now has another tool in its ESG toolbox with the publication of the global loan market associations’ social loan principles (SLP). Launched jointly by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), the SLP are a set of voluntary recommended guidelines for lending that mitigates social issues and challenges or achieves positive social outcomes. The SLP are the latest in a series of ESG-related loan principles. In 2018, the LMA published the green loan principles (GLP), which clarified the instances in which a loan may be categorised as green, while in 2019, the launch of the sustainability linked loan principles gave the finance industry a definition of sustainability linked finance. “The speed with which environmental, social and governance (ESG) issues have moved into mainstream finance is truly remarkable. At the LMA, we have already seen the power of green loans and sustainability linked loans to drive positive ESG outcomes,” says Hannah Vanstone, legal associate at the LMA. “We were really keen to see what we could do and to find out whether something similar to the GLP or the SLLP would be helpful in the… continue reading
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Source: CTRM Center