TY  - UNPD
A1  - Auzepy, Alix
A1  - Bannier, Christina E.
A1  - Martin, Fabio
T1  - Are sustainability-linked loans designed to effectively incentivize corporate sustainability? A framework for review
N2  - The issuance of sustainability-linked loans (SLLs) has grown exponentially in recent years. Using a scoring methodology, we examine the underlying key performance indicators of a large sample of SLLs and analyze whether their design creates effective incentives for improving corporate sustainability performance. We demonstrate that the majority of loans fails to meet key requirements that would make them credible instruments for generating effective sustainability incentives. These findings call into question the actual sustainability impact that may be achieved through the issuance of ESG-linked debt.
T3  - CFS working paper series - No. 688 
KW  - Sustainability-Linked Loans
KW  - sustainability KPIs
KW  - ESG lending
KW  - ESG loans
KW  - sustainable finance
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/68144
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-681448
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4361732
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -