Banks driving green building investment

Banks are increasingly driving the sustainability of new buildings. That’s according to a new report from the Better Buildings Partnership, which says the commercial real estate finance industry is seeing a dramatic shift towards […]

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By Jonny Bairstow

Banks are increasingly driving the sustainability of new buildings.

That’s according to a new report from the Better Buildings Partnership, which says the commercial real estate finance industry is seeing a dramatic shift towards a greener agenda.

It says lenders are using innovative technology to engage borrowers and help them identify energy improvement measures to provide both a financial return and improved environmental performance.

They are achieving this through a range of new lending products, such as Lloyds Bank’s Green Lending Initiative.

The report suggests firms such as Hermes Investment Management and TH Real Estate have taken learnings from their longstanding real estate investment funds and are now applying them in new and innovative ways.

The report calls on real estate lenders to recognise the significant opportunities available to create sustainable change, increase collaboration, improve data quality and develop customer relationships.

John Feeney, Managing Director and Head of Corporate Real Estate at Lloyds Bank Commercial Banking, said: “Debt finance is the lifeblood of the real estate sector and so, in our view, lenders have an opportunity to promote and reward sustainable best practice.

“Property makes a significant contribution to carbon emissions and so mitigating its impact is critical.”

Three major companies are backing a global campaign which aims to ensure all buildings are net zero carbon emissions by 2050.