Sustainability-Linked Loans

Sustainability-linked loans incentivize companies to meet ambitious sustainability performance targets (SPTs). Specifically, these loans 1) clarify the relationship between the company’s sustainability goals, as set out in its comprehensive social responsibility strategy, and its SPTs; 2) evaluate and measure sustainability improvements using predetermined, appropriate SPTs tied to Key Performance Indicators (KPIs); and 3) ensure transparency of the above through post-lending reporting.

These loans are in accordance with the Green Loan Principles, Social Loan Principles, and Sustainability-Linked Loan Principles of the Asia Pacific Loan Market Association (APLMA), Loan Market Association (LMA), and Loan Syndications and Trading Association (LSTA); the Green Loan and Sustainability Linked Loan Guidelines issued by Japan’s Ministry of the Environment; and other principles.