The Voice of Commercial Real Estate Finance

Green lending

Green Lending Working Group

In late 2019 we formed a working group comprising only representatives from lending institutions to consider how we might usefully support the sustainability agenda from the CRE lending perspective. The group is co-chaired by Kate Drew at LGIM an Vincent Nobel at Federated Hermes.

The group has had a number of useful meetings and expanded, and has a collaborative relationship with the LMA and Better Buildings Partnership, whose Sustainability for Lenders working group was an excellent group and resource in previous years.

The working group's first output will be a guide to support climate-related due diligence, to support conversations between lenders and borrowers about asset-level cliimate resilience and climate impact, as well as sponsor management and governance of environmental and sustainability matters generally and in relation to the relevant asset(s). It is expected to be published in mid-2021 and will be available here.

The working group is also considering next areas of focus, including on policy-related matters affecting transitional risk and the incentive structures affecting green transition.

Contact Peter Cosmetatos for further information.