A new guide from the Loan Market Association (LMA) makes sustainability-linked loans more accessible and practical for smaller companies, with an approach better suited to SME’s business needs, resources and sustainability maturity. It offers a way to link financing with relevant sustainability targets while supporting the company’s sustainability journey over time.
The new LMA practice note recognises that SMEs often have fewer resources and less developed sustainability data than larger companies, allowing the loan structure and its sustainability targets to be applied more proportionately to the company’s size and maturity. This means you can focus on relevant, achievable improvements in your own business, making it easier to get started with sustainability-linked financing while building your sustainability capabilities over time.
“Sustainability-linked financing should be relevant and accessible for all companies, regardless of size. The new LMA guidance makes it easier for smaller businesses to connect their financing with meaningful sustainability ambitions” says Nina Arkilahti, Head of Business Banking.
SLL links part of the loan terms to agreed sustainability targets that are relevant to your business. If your company meets the targets, it gets a discount on the interest paid. The financing can be used for general business purposes.
SLL could be a good fit if your company:
*targets could relate to energy use, greenhouse gas emissions, fuel consumption, waste, resource efficiency, workplace safety or similar sustainability topics.
Ready to take the next step in your sustainability journey? Together, we identify the priorities that matter most to your business and find a solution that fits your needs. Our specialists are there to support you throughout and help you navigate the practical steps with confidence.
Contact your Nordea advisor to explore how sustainability-linked financing can
support your company's long-term growth and sustainability ambitions.
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