Creating a Sustainability Reporting Framework for Pace Zero’s Sustainability Linked Loans (SLLs) Borrowers

Venture capital X (VCX) is about to launch a new product: Sustainability-Linked Loan (SLL). These new sustainability-linked financial products represent an interesting opportunity both for lenders and borrowers. To incentivize borrowers to achieve predetermined sustainability objectives, VCX offers reduced interest rates on loans; however, these SLL are contingent on borrowers meeting predetermined sustainability targets.