15 July 2024

Environmental Finance publishes second Sustainable Loans Insight

Environmental Finance has published its Sustainable Loans Insight (SLI) 2024 report, the second edition of its free-to-read sustainable lending analysis and discussion report.

The SLI includes in-depth analysis of the green, social, sustainability, and sustainability-linked loan (SLL) market from Environmental Finance Data, as well as emerging trends such as blue and transition loans and Islamic finance.

The report also includes deep-dive analysis from market experts including SMBC, Moody's, MSCI and Sustainable Fitch on topics including private markets, SLL credibility, leveraged finance, and fund financing.

The 2024 SLI – which follows the inaugural report in 2023 – is published at a fascinating time for the sustainable loan market, with lending volumes down a third to $275 billion in the first six months of 2024 compared with the year prior.

The free-to-download report features unique infographics highlighting trends in regional use-of-proceeds and key performance indicators usage, major transactions, and sectoral breakdowns as well as the leading sustainability coordinator and bookrunners by region.

Environmental Finance Data research analyst Guy Richardson said that although the sustainable loan market has "struggled" in the past year amid high interest rates, geopolitical uncertainty, and heightened concern about 'greenwashing' the market could be on the "brink of a market recovery".

"This second edition of the SLI hopefully points to areas of innovation which could serve as the basis for this renewal," Richardson said. "These include enhanced verification of the targets applied to SLLs to provide additional credibility as well as the advent of use-of-proceeds transition loans, which are poised to receive detailed market guidance from influential professional bodies.

"Elsewhere, innovations around fund finance, private markets, and blue lending hold much potential for expansion into areas previously underserved by the sustainable loans market," he added.

Click here to download your free copy of the Environmental Finance Sustainable Loans Insight 2024 report.