Table sustainability-linked loan targets against the market principles
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- For each measure the draft calls a target, list the indicator, the target level, the reporting date and whether the file has an external verification. Do not draft the schedule.
- What the lawyer must review
- The Sustainability-Linked Loan Principles published through the LSTA, in the PDF dated 26 March 2025, are voluntary recommended guidelines. They are not a statute and they are not the FTC Green Guides. They describe five components: selection of indicators, calibration of targets, loan characteristics, reporting and verification. The indicators shall be material to the borrower's core sustainability and business strategy and shall be relevant, measurable on a consistent method, externally verifiable where feasible, and able to be benchmarked. The borrower shall give a clear definition, including scope, calculation, a baseline, and a benchmark where feasible. A target should be set for each year of the term unless the nature of the indicator justifies another frequency. The margin is the common example of a change when a target is met or missed, and a neutral band is sometimes used. Borrowers shall report at least annually, with a confirmation and a verification report. Independent external verification of performance against each target is a necessary element of the principles and is done by a qualified external reviewer. You decide whether the draft meets the principles. The tool does not set a margin.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording and assembling provisional schedules. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.