FMSB publishes Statement of Good Practice on governance of SLPs
The Financial Markets Standards Board (FMSB) has published a Statement of Good Practice on the governance of sustainability-linked products (SLPs) to establish globally applicable standards. The guidance comprises six key statements of good practice and is supported by a Risk Register that identifies major risks and recommends mitigants aligned with existing guidance from bodies such as the International Capital Market Association (ICMA), the Loan Market Association (LMA), and the International Swaps and Derivatives Association (ISDA). The initiative addresses concerns over the credibility and robustness of SLPs, including issues related to greenwashing, and is intended to enhance the robustness and consistency of governance frameworks for SLPs and thereby boost market confidence, investor trust, and the role of SLPs in transition finance and the decarbonisation of the economy.