The Financial Markets Standards Board (FMSB) has published a Statement of Good Practice on the governance of sustainability-linked products (SLPs), setting out globally applicable good practices intended to promote more robust and consistent governance frameworks for these instruments. SLPs are products whose financial and/or structural characteristics vary based on achievement of pre-defined sustainability or ESG objectives, measured through key performance indicators and assessed against sustainability performance targets. The guidance responds to credibility and greenwashing concerns that have hampered issuance growth, and sets out six Statements of Good Practice to strengthen and standardise governance. It is accompanied by a Risk Register identifying key SLP risks and mitigants aligned with the SoGP and existing asset class guidance from the International Capital Market Association, the Loan Market Association and the International Swaps and Derivatives Association.
Financial Markets Standards Board 2025-04-30
Financial Markets Standards Board publishes good practice guidance on governance of sustainability-linked products
The Financial Markets Standards Board published a Statement of Good Practice on the governance of sustainability-linked products, outlining globally applicable practices to enhance governance frameworks and address credibility and greenwashing concerns. The guidance includes six Statements of Good Practice and a Risk Register aligned with existing asset class guidance from major associations.