Investment & Lending
Investors and lenders are the financial powerhouses behind the commercial real estate sector. They provide the capital to acquire, develop, redevelop, refurbish and manage commercial property. There are a wide range of investors and lenders ranging from large pension funds, to sovereign wealth, private equity and banks.
Many of these investors have developed ESG strategies for their equities portfolios and are now looking towards their real estate assets to understand the investment risks and opportunities associated with sustainability issues. Many lenders are also looking to incorporate sustainability and ESG requirements into their lending criteria.
To stimulate market transformation in this area, we have the Investment & Lending Workstream. This workstream covers our European Investments Working Group and wider activities to engage with the investment and lending community.
Investor Engagement Working Group Co-Chairs
The Better Buildings Partnership’s Investor Engagement Working Group (IEWG) brings together investors, lenders, property managers, and sustainability professionals to explore how environmental, social, and governance (ESG) considerations can be integrated across real estate investment decisions.
The group provides a collaborative space for members to share insights, discuss emerging market trends, and identify opportunities to improve ESG integration within investment processes. A key focus for the Working Group is understanding how evolving regulatory requirements, tenant expectations, and climate-related risks influence investment strategies. By facilitating dialogue between a diverse mix of stakeholders, the group helps ensure that sustainability considerations are embedded in a practical and financially informed way.
Through ongoing collaboration, knowledge sharing, and engagement across the sector, the IEWG supports the Better Buildings Partnership’s mission to promote sustainable investment practices and drive long-term value for both investors and the wider real estate market.
Highlights of the last year include:
- Building on momentum from previous years, the Working Group has focused on embedding sustainability considerations more deeply into investment decision-making processes and expanding its engagement with investor members and stakeholders.
- Following its relaunch in February 2024, the main focus for FY 2024/25 has been the ongoing promotion and support of the Acquisitions Sustainability Toolkit. The toolkit has remained a practical resource guiding commercial property owners through sustainability risk and opportunity assessment during the acquisition lifecycle.
Related Resources:
European Investments Working Group Co-Chairs
The Group brings together members to share and discuss common challenges and solutions associated with investing in real estate across Europe. Our members have heard talks on subjects including the French Décret Tertiaire policy, the EU Taxonomy, SFDR, the EU’s proposal Social Taxonomy, and an overview of ESG regulation across Europe.
Members of the European Investment Working Group include:
abrdn, Aviva Investors, Blackstone, BMO Real Estate, Brookfield Properties, CBRE GI, DWS, EDR REIM, Federated Hermes, GPE, Grosvenor, Invesco, LaSalle Investment Management, Lendlease, Low Carbon Workplace, M&G Real Estate, Morgan Stanley, Norges Bank, Nuveen Real Estate, Orchard Street Investment Management, PGIM, Savills Investment Management, Schroder Real Estate, SEGRO, URW and Workspace Group.
Highlights from the last year include:
-
In July 2024, the EIWG successfully issued updated resources to members, providing essential guidance to help navigate compliance with EU sustainability regulation, representing a key milestone supporting members' alignment with the latest requirements.
- A subgroup convened in Summer-Autumn 2023 to review detailed compliance with the EU Taxonomy Technical Screening Criteria. Although the planned output for 2024-25 was not completed, a renewed focus is underway following an April 2024 meeting with Morgan Stanley. A planning session in July 2024 reconvened the working group to reaffirm priorities, with the project scheduled to progress in the next operational year.