Standards & schemes
Loan Market Association (with LSTA, APLMA)
In brief
The Loan Market Association's Green Loan Principles, Social Loan Principles and Sustainability-Linked Loan Principles — published jointly with the LSTA and APLMA, 2025 versions current — are the market standards for labelled lending. GLP and SLP mirror the ICMA bond principles' four components (use of proceeds, evaluation, management of proceeds, reporting); SLLP instead ties loan terms to the borrower's performance on material sustainability KPIs against Sustainability Performance Targets, with external verification expected. They are voluntary process guidelines applied bilaterally or in syndicates; alignment is asserted by the parties, typically with external review, not certified by the LMA. The principles are maintained with sister associations in New York and Asia-Pacific, keeping documentation consistent across the major loan markets, and model clauses and guidance notes accompany each edition. In sustainability-linked lending, the SPT-setting and verification expectations are the integrity backbone: a weakly calibrated target makes a 'sustainability-linked' label hollow even when the paperwork is perfect. Alignment with these principles is a stated position, not a certification; it does not by itself demonstrate compliance or outcomes.
Conditional relationships
A relationship does not mean that the standard proves or validates every use of a claim.
Recognition & legal context
No reviewed law references are published.
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