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Provisions to make your loan greener

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Companies, their boards and investors are increasingly aware of environmental, social and governance (ESG) issues and the impact those may have on business operations. Additionally, many entities are supporting the fight against climate change and the move towards achieving net zero.

The financial markets have responded to these concerns by establishing green and sustainable loan and bond structures that support environmental and social purposes or the achievement of related key performance indicators by the borrower. In addition, forward thinking borrowers, lenders and their lawyers can incorporate environmentally- and socially-aligned clauses into traditional facility documents.

To assist, The Chancery Lane Project (TCLP) has created model clauses and other legal resources that support the fight against climate change and help the parties move towards achieving net zero. These resources include model clauses for use in facility agreements. Practical Law has now highlighted these clauses in its key resources to help our subscribers access these important model clauses.

For more information about the TCLP resources developed for the finance industry, see Toolkit, The Chancery Lane Project: model climate clauses; Banking and Finance.

By Practical Law Banking and Finance Team

Practical Law Australia’s expert legal writers have practical expertise gained from some of the country's leading law firms and corporate legal departments, including Ashurst, Baker & McKenzie, Gilbert + Tobin, Herbert Smith Freehills, the Australian Broadcasting Corporation (ABC) and more. They understand the pressure to deliver timely and cost effective legal advice, which is why Practical Law’s fully maintained practice notes, precedents, drafting notes and checklists offer clear and concise know-how with a practical perspective.

For more information on Practical Law Australia’s legal writing team, visit legal.thomsonreuters.com.au/practical-law-team

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