Aviva Investors has pledged to set aside £1 billion in sustainability-linked loans for the real estate sector over the next four years.
It is supported by the launch of its Sustainable Transition Loans Framework, which will focus on key sustainability targets such as energy efficiency and green initiatives, including onsite renewables.
Under 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.
Vigeo-Eiris (V.E), the ESG rating and research agency, has provided second-party verification and accreditation for the framework, to ensure the loans comply with the Loan Market Association’s sustainability-linked loan principles.
Ed Dixon, Head of ESG, Real Assets 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. This is a critical challenge in the fight against climate change, with the built environment responsible for over 40% of carbon emissions globally.
“We are thrilled to have the support of V.E as part of this initiative, who will independently verify our framework to ensure a consistent industry best-practice standard is adhered to.”