The social aspect of environmental, social and governance (ESG) is an essential component of a sustainable business practice providing sustainability, and perhaps it is even more important than the environmental aspect. This article focuses on the ‘S’ in ESG, and its importance in South Africa.

The adoption and implementation of ESG practices has become increasingly

From a reputational and corporate governance perspective, green and sustainable activity both gain favour with shareholders and investors (particularly those who place emphasis on investment with a positive environmental, social and governance (ESG) impact). Green Loans and Sustainability Linked Loans have distinctive characteristics which should influence the type of loan offering borrowers consider.

What are Green Loans?

Green loans are loan instruments made available exclusively to finance or re-finance, wholly or partly, new or existing eligible Green Projects, according to the Loan Market Association’s Green Loan Principles (the GLPs). There are no specific qualifying criteria for a “Green Project” but indicative categories set out in the GLPs