LendInvest has published a Green bond framework, aligned with the ICMA Green Bond Principles, supported by a Second Party Opinion (SPO) from ratings agency S&P Global Ratings.
Net proceeds from the green bonds will be exclusively used to finance or refinance loans for eligible green projects including the construction and purchase of assets compliant with the high energy efficiency standards in the UK property market, or enhancements to improve the energy performance of existing properties.
To date, LendInvest has issued three retail-eligible bonds, under two EMTN programmes which are listed on the London Stock Exchange, the latest of which was issued in July 2022 at 6.5% due 2027.
LendInvest’s Green Bond Framework is designed to accelerate the allocation of capital to eligible retrofit projects in the UK in an effort to decarbonise the UK’s housing stock, which is responsible for 14% of total UK emissions.
LendInvest has also achieved carbon neutrality as a business for the last financial year. To achieve this, LendInvest worked with leading carbon solutions provider, Climate Impact Partners (formerly known as ClimateCare & Natural Capital Partners).
The business’ total Greenhouse Gas Emissions totalled 253 tCO₂e over the financial year, covering all scope 1 and 2 emissions in addition to a range of scope 3 emissions, that are offset through a number of high impact emission reduction projects. These projects include supporting renewable energy, reforestation, improved water filtration and sustainable building efforts, and align with LendInvest’s ESG strategy and a range of the UN’s Sustainable Development Goals that are focused on climate action, as well as the Paris Agreement in limiting mean global warming to well below 2 degrees celsius above pre-industrial levels.
Hugo Davies, chief capital officer at LendInvest, said: “Given the built environment is responsible for a large proportion of emissions, it is imperative that our industry works to make real, tangible progress in improving energy efficiency & reducing the environmental impact of real estate.
The hard-hitting truth is that there is still a lot to be done and far too often we lull ourselves into a false sense of security. We need our national EPC databases and methodologies to be fit for purpose, we need to ensure we are training a new generation of skilled professionals who will have the right resources to adequately retrofit homes and we need to ensure that everyone in our ecosystem is working towards a unified goal.
We are delighted to share that for the first time, our Green Bond Framework will allow all types of investors to be at the forefront of this change as we seek to invest in retrofit projects through green bonds in the future.”
A spokesperson at ClimateCare added: “We work with leading organisations to deliver action on climate change and create a more sustainable world. Our joined-up approach helps organisations address their environmental impacts through high-quality carbon market solutions that also deliver positive impact.”
