Last week, we were joined by a fantastic line up of panellists who shared their insights on developing ESG strategies in the property and construction sectors, giving them access to better sustainable finance options.
The discussion highlighted the rapid growth of sustainable finance both in Aotearoa and globally. New Zealand banks, especially those who have signed the global Net Zero Banking Commitment, are setting ambitious targets to boost sustainable finance. Along with their clients who are investing in real estate and property portfolios, they recognise that strong sustainability credentials are key to attracting international investment. With the built environment contributing 20% of New Zealand’s emissions, having clear definitions of green buildings has helped sustainable finance move forward.
Government levers to increase sustainable finance
It was useful to hear the levers Government could use to drive for sustainable finance including capacity building between government and corporates, central bank policies, and sovereign wealth funds favouring sustainable assets.
ESG factors to be included in valuation decisions
It is worth highlighting a significant new directive for valuers to include ESG factors in their valuation decisions which will take effect in January 2025. This change is expected to have a large impact on the market. More information from the Institute of Charter Accountants ANZ is available here. JLL’s interpretation has also been released by Dr Georgia Warren-Myers who also released industry leading analysis on the impact of green certifications on rents, prices and values.
Greening business decisions
It was also motivating to hear that adopting sustainable finance has helped businesses take a robust approach to greening their business decisions, helping to bring cohesion to organisations. As Dean Spicer aptly put it, “It’s not just good enough to have a green building, what’s your overall sustainability strategy?”
Thanks to Daniel Street - DLA Piper, for moderating the discussion, and our panellists Saatyesh Bhana - Argosy Property, Rachel Brown - DLA Piper, Jo Kelly - Centre for Sustainable Finance, and Dean Spice - ANZ NZ.