Agrifood systems face increasing pressure to reduce emissions, protect biodiversity, use resources more efficiently and adopt more sustainable production practices. At the same time, financial institutions and agrifood companies are increasingly expected to play a central role in supporting this transition.

A new study by the EBRD and the FAO Investment Centre – Integrating sustainability-linked loans into agrifood finance – explores how sustainability-linked loans (SLLs) can support the shift towards more sustainable agrifood systems, from farm to fork. The study examines key topics, such as:

• The evolution of SLL standards
• The most common sustainability targets in agrifood transactions
• Practical challenges, such as adapting key performance indicators, establishing baseline measurements and covering verification costs
• Recommendations for financial institutions and policymakers

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