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United Kingdom
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Key definition
Sustainability definition

What does Sustainability mean? In legal practice, sustainability describes integrating environmental, social and economic considerations into planning, procurement and construction so that buildings and infrastructure are healthy, comfortable and affordable, use durable and renewable resources, and minimise environmental impact over their whole life. It is not a single statutory definition; rather a cross‑cutting concept often expressed as “sustainable development”. In England (planning law under the Planning and Compulsory Purchase Act 2004 and the NPPF), Scotland (NPF4 and planning legislation), Northern Ireland (Planning Act (NI) 2011 and the SPPS) and Ireland (Planning and Development Act 2000), it guides plan‑making and planning permission, environmental impact assessment and...

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Sustainability-linked loans: UK practitioners’ guide to SLLPs, KPI/SPT calibration, margin ratchets, reporting, verification, LMA drafting, amendments, sleeping SLLs and greenwashing risks

Practice notes
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This Practice Note sets out information on Sustainability-linked Loans (SLLs) and the key points to address when drafting and negotiating a sustainability-linked Loan Agreement. It centres on the Sustainability-Linked Loan Principles (SLLPs) issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), as periodically updated. For an introductory overview of sustainable finance for transactional banking and finance lawyers, see Practice Note: Introductory guide to sustainable finance for banking and finance lawyers—this outlines the core concepts and challenges in sustainable finance and summarises the regulatory landscape at a high level. See Types of ESG finance—overview for materials on other ESG financing, including green loans and bonds, social loans and sustainability-linked derivatives...

What is meant by a sustainability-linked loan?

According to the SLLPs, sustainability-linked loans are any loan instruments and/or contingent facilities (for example, bonding lines, guarantee lines or letters of credit) whose financial and/or structural terms may change depending on whether the borrower meets predefined sustainability performance targets that are ambitious, material and quantifiable. Alongside other forms of finance, such as green loans...

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Web page updated on 22/05/2026

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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