Aviva Investors says it will originate £1 billion (€1.08 billion) in real estate debt over the next four years with a view to carbon reduction.
Through the Sustainable Transition Loans Framework, the firm intends to seek out real estate loan investment opportunities that are aligned with the United Nations’ Sustainable Development Goals.
Specific requirements will be set out for real estate borrowers to adhere to in order to reduce carbon emissions from buildings, the fund manager said.
The framework focuses on sustainability targets such as energy efficiency and green initiatives including on-site renewables. ESG criteria will be embedded into the lending programme, the firm said.
Gregor Bamert, head of real estate debt at Aviva Investors, said: “We believe that by directly linking long-term financial incentives to measurable improvements in the environmental performance of the buildings we lend against, we can incentivise and engage borrowers to consider sustainability factors in a more meaningful way.”
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