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Aviva Investors commits to £1 billion climate transition real estate loans

Aviva Investors has set aside a billion pounds to finance sustainable real estate investments over the next four years
The £355bn (€385.6bn) global asset management business of insurer Aviva has announced a commitment to originating £1bn in the sustainable transition real estate debt.

Gregor Bamert, the 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.

“Our target of originating £1bn of sustainable transition loans reflects a commitment to reducing the carbon footprint of our clients’ portfolios.”

Aviva Investors said it has also launched Sustainable Transition Loans Framework, to be used by the manager to seek out sustainable real estate loan investment opportunities in line with the United Nations Sustainable Development Goals.

It will focus on key sustainability targets such as energy efficiency and green initiatives including on-site renewables.

As part of the initiative, Aviva Investors will embed measurable environmental, social and governance (ESG) commitments into its lending programme, setting out specific requirements for real estate borrowers to adhere to, in order to reduce carbon emissions from buildings, as it continues to support the transition to a low-carbon economy.

ESG rating and research agency Vigeo-Eiris has provided second-party verification and accreditation for the framework, Aviva Investors said.

Ed Dixon, the head of real assets ESG at Aviva Investors, said: “Our new proprietary framework is designed to specifically address the climate transition of buildings, which is an area of increasing focus across the real estate market.

Source: realassets.ipe.com on 8 December (https://realassets.ipe.com/news/aviva-investors-commits-to-1bn-climate-transition-real-estate-loans/10049481.article)