Sustainability-linked loans’ targets increasingly sophisticated, science-based
Two-way adjustments, dynamic goals, indirect emissions being explored, industry players say.
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SUSTAINABILITY-LINKED debt in Singapore increasingly incorporates targets that are more sophisticated and science-based, in line with the growing number of net-zero commitments, industry players told The Business Times.
While details of specific loan transactions are confidential, observers and market participants say that sustainability-linked loans (SLLs) here are increasingly factoring in such targets – with their uptake showing that corporates are also cognisant of the financial benefits of improving their sustainability practices over time.
SLLs and sustainability-linked bonds vary the interest that borrowers must pay depending on the borrowers’ performance against key performance indicators (KPIs).
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