meta_id 3339787

On July 20, 2026, the Loan Market Association (LMA), together with the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA), published a Practice Note for the Assessment of Pure Play Companies. The guidance provides market participants with a practical framework for identifying and assessing pure play companies (PPCs) whose business activities are primarily focused on environmental or social objectives. The practice note establishes clear eligibility criteria and operational standards for PPC designation within sustainable finance transactions. A company may be designated as a PPC where at least 90 percent of its revenue or assets, or an appropriate alternative metric, are derived from eligible green or social activities. The framework permits flexibility in metrics, allowing the use of revenue, assets or credible alternative metrics depending on the company's business model and stage of development. Companies must demonstrate the absence of significant harm and ensure that any non-eligible activities are not incompatible with the PPC designation. The practice note requires annual reassessment and disclosure to support continued PPC status over the life of a transaction. The LMA emphasised that the practice note does not create a new loan label or amend existing green, social or sustainability-linked loan principles. Rather, it supports the analysis and structuring of sustainable loans by helping market participants better assess sustainability exposure at an entity level. This alignment supports internal frameworks, regulatory expectations, investor expectations and broader market practice. The LMA and partner associations will continue to monitor market developments and update the practice note as appropriate to reflect evolving practices and standards.