{"id":78915,"date":"2023-04-03T13:11:20","date_gmt":"2023-04-03T11:11:20","guid":{"rendered":"https:\/\/gresb.wpengine.com\/?page_id=78915"},"modified":"2025-12-16T16:52:21","modified_gmt":"2025-12-16T15:52:21","slug":"sustainability-linked-loans","status":"publish","type":"page","link":"https:\/\/www.gresb.com\/sustainability-linked-loans\/","title":{"rendered":"Sustainability-linked loans"},"content":{"rendered":"\n
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Sustainability-linked loans in real estate: principles, practice, and credibility<\/h2>\n

Sustainability-Linked Loans (SLLs) are an increasingly important financing tool in real estate, linking loan terms to a borrower\u2019s sustainability performance. As adoption grows, consistent and credible approaches to KPI selection, target-setting, reporting, and verification are critical to maintaining market integrity.<\/p>\n

To support more robust market practice, GRESB has developed sector-specific guidelines for Sustainability-Linked Loans in real estate. The guidance applies the core components of the Sustainability-Linked Loan Principles to real estate entities, offering practical considerations for borrowers, lenders, and advisors across KPI selection, Sustainability Performance Targets, reporting, and verification. It is relevant both to formally labelled SLLs and to SLL-like financing structures. While SLLs remain bespoke by design, the guidelines aim to promote greater consistency and comparability across the market. GRESB metrics and benchmarks are commonly used within SLL frameworks to inform KPI selection and target calibration, with examples highlighted below.<\/p>\n

This resource was developed with the practical feedback from leading market participants and reviewed by the Asia Pacific Loan Market Association and the Loan Market Association.<\/p>\n<\/div>\n

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How GRESB is used in sustainability-linked loans<\/strong><\/h2>\n

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GRESB is increasingly becoming a cornerstone of these loans, with scores and benchmark standings being used both to set and manage Sustainability Performance Targets and to support reporting and verification of the loan.<\/p>\n

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This is because GRESB is:<\/p>\n

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