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The European Central Bank wants lenders under its supervision to get a grip on their exposure to the environmental crisis.
Target returns and sustainability goals can both feature in real estate debt strategies, argue BNP Paribas Asset Management’s Christophe Montcerisier and Nicolas Toupin.
The credit manager has set up a Paris-based debt business focused on lending against assets being readied for a low-carbon economy across continental Europe.
As managers shift to focus on near-term challenges, sustainability and social impact goals are at risk of being deprioritised.
Across the financial and asset management worlds, claims about sustainability are coming under scrutiny. For real estate lenders, ensuring that their approach to ESG-related lending is clear and accountable is becoming imperative.
The participants in Real Estate Capital Europe’s mid-market roundtable seek to discover opportunity in a segment buffeted by economic headwinds.
The manager is on the hunt for borrowers with ESG-related business plans.
A survey by the German real assets manager shows an 18% increase in clients that demand ESG data in response to new EU targets.
As interest in green lending strategies rises, US lenders are looking to their European counterparts for a roadmap to writing sustainable loans.
The imminent tide of refurbishments to meet environmental standards will provide opportunities for lenders.