But how quickly the complexity became apparent. You see, whilst the SC role is one that has developed rapidly in recent years, it is one that remains multi-faceted and ever evolving – varying considerably from transaction-to-transaction and across different sectors and jurisdictions. Nonetheless, we at the LMA are never ones to shy away from a challenge!

Following considerable efforts from our dedicated task force and the LMA’s Sustainability Committee, as well as Sukhvir Basran and her team who led on the drafting efforts, we were delighted to release our new recommended form of sustainability coordinator letter (the SC Letter) on 23rd April 2024. The SC Letter is intended to provide a starting point for negotiation where a SC is to be appointed.

Given that the SC role is continuing to develop, the SC Letter will be kept under review and updated periodically as required. We will also be looking to update our ‘Introduction to the Sustainability Coordinator Role’ guidance later this year.

The SC Letter seeks to strike a balance between the different positions taken by market participants, and therefore includes extensive drafting notes for consideration. Below is a summary of some of the key provisions that were heavily negotiated and an explanation of the drafting position adopted by the LMA. For more detailed drafting notes, please see the SC Letter.