Focus on real assets with sustainability at the core

Towards a more sustainable economy

Around 70% of global greenhouse gas emissions come from infrastructure construction and operations (such as power plants, buildings and transport).

Meanwhile, buildings account for approximately 40% of energy consumption and 36% of carbon dioxide (CO2) emissions in the EU.

It is estimated that a large majority (up to 95%) of the buildings that exist today will still be standing in 2050, so it is necessary to double renovation rates in the next 10 years to provide for higher energy and resource efficiency.

This, coupled with increased regulation to improve energy efficiency and green credentials, points to a growing need for sustainable real estate and infrastructure in Europe.

To capitalise on this growing investment opportunity, to date, ICG has launched three sustainably-themed products in real assets:

These funds have environmental, social and governance (ESG) frameworks designed to align with specific United Nations sustainable development goals (SDGs), and all incorporate climate-focused SDGs including:

  • SDG 7 (Clean Energy)
  • SDG 13 (Climate Action)

We are also developing a green loan framework to target the UK residential real estate market.

Case study

Real Estate Partnership Capital strategy

First green loan investment

Through Real Estate Debt Fund VI (Real Estate Partnership Capital), ICG provided an €85.8 million mezzanine facility supporting the off-market acquisition and light capex business plan of a 48,000m2 office campus in the centre of Berlin, Germany.

Using the six eligibility criteria of the fund’s Green Loan Framework, assessed by an independent party, the campus has commitments in place, in line with the goals of the Paris Agreement, to:

  • contribute to the reduction of energy consumption by 57%, and
  • and corresponding carbon emissions by 58%

The building will seek to achieve a DGNB Gold green building certificate, requiring top marks across the three sustainability areas of ecology, economy and sociocultural issues. It will also demonstrate ‘best practice’ in water efficiency, achieve EPC B rating and will incorporate its own green travel plan.