FMSB publishes good practice statement for sustainability-linked products

The FMSB has released a Statement of Good Practice for the governance of sustainability-linked products: that is, product whose characteristics very depending on whether the user achieves set sustainability or ESG objectives. These instruments are suitable for general corporate purposes and can provide a route to accessing the sustainable finance market. All SLPs share basic features, but as they can take the form of loans, bonds or derivatives, there are differences across products.

The FMSB says there has been concern over the credibility and robustness of the products, and so has provided 6 good practice statements designed to strengthen and standardise their governance.