On 23 February 2023, a joint working group which included the LMA, the APLMA and the LSTA published updated Sustainability-Linked Loan Principles, Green Loan Principles and Social Loan Principles together with related guidance. The changes made are intended to reflect market developments and ensure that these publications continue to promote the development and integrity of sustainability-linked, green and social loans.

Given the prevalence of sustainability-linked loans, the changes made to the Sustainability-Linked Loan Principles and related guidance are likely to be of greatest interest to the loan markets and have the potential to impact ‘sleeping’ sustainability-linked loans as well as loans where all of the sustainability-related provisions are agreed at the outset.