Sustainability Certificate

Summary

This template Sustainability Certificate is a certificate attached to a loan or credit agreement as a schedule or exhibit. In a sustainability-linked loan agreement, the borrower is required to deliver regular reports to demonstrate compliance with sustainability targets. This template includes practical guidance and drafting notes. Borrowers and lenders are increasingly utilizing environmental, social and governance (the "ESG") metrics in loans to incentivize and award borrowers to meet ESG targets. Sustainability certificates are provided periodically, typically annually to the sustainability structuring agent. For specific market updates and descriptions of trends relating to sustainability-linked loans, see Sustainability-Linked Loans, Sustainability-Linked Loans Tracker, and Market Trends 2023: Sustainability-Linked Loans. For an overview of use of proceeds ESG-driven bonds, see Social Bonds and Green Bonds. For an overview of social and green loans, see Social Loans and Green Loans. For an overview of sustainability-linked bonds, see Sustainability-Linked Bonds. For a practice note highlighting emerging developments to enhance ESG disclosure applicable to banking institutions, see Climate-Related Risk and ESG Considerations for Banking Institutions.