Glossary
Sustainable finance glossary.
Clear definitions of the terms used in SLLs and ESG verification.
Sustainability-Linked Loan
A loan whose terms are linked to the borrower's sustainability performance.
KPI
Key Performance Indicator, the sustainability metric measured under an SLL.
SPT
Sustainability Performance Target, the level a KPI must reach by a set date.
Second Party Opinion
An external assessment of a sustainable finance framework, usually before signing.
ESG Verification
Independent checking of reported environmental, social and governance data.
Independent Verification
Review by a qualified external party independent of the borrower.
Sustainable Finance
Financial services that integrate environmental, social and governance considerations.
Green Loan
A loan used exclusively to finance eligible green projects.
Sustainability-Linked Loan Principles
The LMA/APLMA/LSTA market framework for SLLs.