How can investors ensure their assets comply with ESG criteria?

Banking & Finance Partner, James Walton recently wrote for Property Week examining how real estate lenders are fast altering their business models to ensure that their loans are compliant with ESG criteria.

In recent years, investors across sectors have increasingly focused on environmental, social and governance (ESG) criteria.

Real estate investors are expected to ensure their assets satisfy the ‘E’, ‘S’ and ‘G’ of ESG. Buildings are expected to be constructed and operated in a manner that meets certain environmental standards; they must have a positive social impact and those involved in buying, building or managing real estate assets are expected to be governed in a responsible manner.

Real estate lenders are also altering their business models to ensure their loans are ESG compliant. In May this year, the Loan Market Association (LMA) published the Sustainability Linked Loan Principles, which are aimed at incentivising a borrower’s achievement of predetermined sustainability performance targets, measured against categories including energy efficiency, water consumption and use of recycled materials…

Read the full article on Property Week.

James has also written a longer blog on the same subject which can be found here.