Sustainability-linked derivatives
From ACT Wiki
Sustainability - sustainability-linked contracts - derivatives.
(SLD).
A sustainability-linked derivative is a derivative contract incorporating payment cashflows referenced to key performance indicators (KPIs) measuring environmental, social and governance performance against pre-agreed targets (ESG targets).
See also
- Corporate social responsibility
- Derivative
- Green Bond Principles (GBP)
- ESG
- Green bond
- Key performance indicator (KPI)
- Social bond
- Social impact bond
- Sustainability
- Sustainability bond
- Sustainability Bond Guidelines (SBP)
- Sustainability-linked bond (SLB)
- Sustainability-Linked Loan Principles (SLLP)
- Sustainability performance target
- Use of proceeds bond