Noah’s Clause – Green or Sustainability-Linked Lending Requirement
- These rider clauses for LMA facilities agreements allow borrowers to set sustainability-linked lending thresholds for lenders.
- Whilst the banking industry has seen an increase in ‘green’ loans, these products usually focus on the Borrower’s climate credentials.
- This clause encourages lenders to align with the Borrower’s net zero values and promotes greater transparency in the banking sector.
Levi’s Clause – Green Fuel Requirement and Termination for Greener Carrier or Shipper (Maritime)
- This clause gives customers the right to terminate a transport of goods contract for a greenier carrier, incentivising carriers to improve their environmental performance.
- The shipping sector is heavily implicated in global supply chains, with emissions contributing directly to an organisation’s scope 3 emissions.
- Levi’s Clause adapts Agatha’s Clause (Termination for a Greener Supplier), for shipping.