New Finance Clauses

We have released two new finance clauses – Lara’s Clause and Stella & Flora’s Clause.

Lara’s Clause (ESG Linked Pricing Adjustment for Derivatives Transactions)

Lara’s Clause is a generic guide and checklist to introduce sustainability linked principles into derivatives documents where the ESG-related performance criteria is not linked to any other underlying loan documents.

Derivatives play an essential role in advancing the sustainable finance agenda and in mobilising large amounts of capital needed for sustainable investments over the next decade.

Stella & Flora’s Clause (Environmental Targets for a Limited Partnership Agreement)

Stella & Flora’s Clause amends and adds to the ILPA standard form Limited Partnership Agreement, allowing ESG issues to be investigated, raised and incorporated in investment and pricing decisions.

By bringing best practice UNEP PRI wording out of side letters and into the main agreement, this clause puts asset managers on an equal footing. This enables informed investment decisions that assist in minimising exposure to environmental risk and achieving net zero targets.

Contact us to let us know how you will use these clauses in your practice to deliver climate positive impact for your clients and the planet!