Structuring ESG Provisions in Finance Transactions: Performance Targets, Key Indicators, Reporting Obligations, Remedies
Borrower Incentives, Sustainability Washing and Other Lender Concerns
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss the incentives behind ESG-linked loans for both borrowers and lenders and examine loan provisions and documentation. The panel will discuss the drafting of key performance indicators (KPIs) and reporting obligations, address the failure to meet ESG performance targets, and identify and prevent sustainability washing.
Outline
- Why funds and lenders are increasingly including ESG criteria in commercial loans
- Setting sustainability performance targets and key performance indicators: factors to consider
- Determining reporting requirements and future adjustments
- Failure to meet a KPI and subsequent "cure" provisions
- Sustainability washing
Benefits
The panel will review these and other relevant issues:
- What are the benefits to borrowers and lenders of addressing ESG considerations in a loan transaction?
- Types of ESG targets to consider, and how to measure them
- Who should report on KPIs? How can accuracy be verified?
- How should the failure to meet performance targets be addressed in the loan documents?
- What is sustainability washing, and how can it be prevented?
Faculty

Katie McShane
Attorney
Cadwalader Wickersham & Taft
Ms. McShane is an associate in Cadwalader's Finance Group, resident in the New York office. Her practice is... | Read More
Ms. McShane is an associate in Cadwalader's Finance Group, resident in the New York office. Her practice is concentrated in the area of fund finance.
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Wesley A. Misson
Partner
Cadwalader Wickersham & Taft
Mr. Misson is a partner in the firm’s Finance Group. His practice focuses on fund finance, and he has represented... | Read More
Mr. Misson is a partner in the firm’s Finance Group. His practice focuses on fund finance, and he has represented financial institutions as lenders and lead agents in hundreds of subscription credit facilities and other fund financings during the course of his career. Mr. Misson's experience encompasses both subscription and hybrid facilities and includes working with fund-related borrowers on the negotiation of third-party investor documents with institutional, high net worth and sovereign wealth investors.
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