Sustainability provision

1. Sustainability linked loans (SLLs) - documentation - Loan Market Association (LMA).

Under the Loan Market Association (LMA)'s draft provisions for sustainability-linked loans, the definition of a Sustainability Provision is intended to capture all the sustainability-related obligations imposed on the borrower under the sustainability linked loan (SLL).

In this context, failure to comply with a sustainability provision is designated as a sustainability breach rather than an event of default.

(Source - A Borrower's Guide to Sustainability-Linked Loan Terms - Slaughter and May, Association of Corporate Treasurers, August 2023, p39.)

2.

Similar provisions in other contexts.

See also

• Documentation
• Event of default
• Greenwash
• Loan Market Association (LMA)
• Provision
• Sustainability
• Sustainability breach
• Sustainability linked loan (SLL)
• Sustainability-Linked Loan Principles (SLLP)
• Sustainability performance target (SPT)