ICG has developed a Green Loan Framework (GLF) as part of its latest Partnership Capital fund (Real Estate Debt VI) which provides a structured, sound and innovative approach to green financing for commercial property investments.
ICG has worked alongside a specialist environmental consultancy to ensure that the GLF aligns with current best practice, including the recommendations laid out in the Green Loan Principles and the EU Taxonomy. The GLF incentivises borrowers to continue making sustainability improvements in commercial property.
We are excited to have introduced a sustainable framework to the Partnership Capital strategy which will allow us to have a measurable and positive environmental impact.
Martin Wheeler, Managing Director, ICG Real Estate
Green Loan Framework
Investment case
Sustainable real estate development
- Higher rental premiums
- Reduced operating costs
- Increased letting speed
- Higher occupancy rates
- Reduced regulatory risk
- Stronger property values
Sustainable investing
- Sustainable Finance Disclosure Regulation (SFDR) Article 8+ Fund: promotes environmental criteria
- Majority of Fund loans will be under GLF which has a ‘sustainable objective’ under SFDR Article 9
Highlights
Overview
- Financially incentivise borrowers to improve the sustainability of mid-market commercial real estate
- Best practice alignment:
- LMA Green Loan Principles
- EU Taxonomy and UN sustainable development goals (SDGs)
- Developed in partnership with expert Real Estate sustainability consultants
- Strong governance: Head of RI on Investment Committee to oversee GLF implementation
Best practice
- EU Taxonomy
- Green Loan Principles
- SDG 3 (Good Health and Wellbeing)
- SDG 7 (Affordable and Clean Energy)
- SDG 11 (Sustainable Cities and Communities)
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
Impact
Objectives
- Energy efficiency
- Water efficiency
- Responsible use of materials
- Green building certification
- Waste management
- Sustainable travel
Second opinion
- CICERO Medium Green
Subscribe to our newsletters
Sign up for Regulatory News updates: click here
