2021 promises much progress in the world of sustainable finance. Interest in sustainable finance is exploding, which is stimulating rapid developments while at the same time creating a somewhat fragmented and possibly overwhelming landscape to participants.
This article focuses on sustainable lending—a distinct sub-category of sustainable finance that aims to accomplish environmental, social or governance (ESG) ends concurrently with more traditional lending purposes. We identify the key drivers and considerations for sustainable lending, to allow market participants to successfully navigate the fast-changing topography. In so doing, we hope to inspire the industry to make sustainable loans ambitious, consistent, meaningful and ubiquitous.
