Impact Lending Framework
The Impact Lending Framework is an innovative new lending offering for developers of residential and commercial real estate.
What does the Framework offer developers?
Direct financial incentives to deliver high levels of sustainability or social impact
Fee reduction of up to 1% of the loan value
Rewards are back-ended based on delivery, not just aspiration
Qualifying criteria are stretching and use independent, industry-accredited measures
Performance is subject to external, third-party verification
Our ESG vision and credentials
It is clear that the direction of travel construction will be to use more sustainable methods and materials, in a bid to reduce our impact on the world around us. As a lender, we know we have a part to play in this – not only in a moral sense, but from an economic one as well. Ultimately, more sustainable buildings are more valuable, both now and in the future.
Built into our plans are not only how many developments we fund each year, but the quality of these developments, and the impact they will have on their local communities. All our loans are subject to our own strict ESG assessment, and we seek to promote sustainable developments with a minimal, and preferably neutral even negative, carbon footprint.
Conscious also of the social impact of the developments we support, it is important for us to fund projects all across the UK, responding to where there is need and ensuring we deliver nationwide support to our clients. We are proud to have funded projects in every nation of the United Kingdom and over 96% of English counties.
Loan Impact
The Framework sets out the criteria under which prospective development projects can qualify as an impact loan.
Further details of how the framework is applied are set out in the table on pages 8/9.
Residential Impact Loan
Developments must meet EITHER the Sutainability Criteria or the Social Impact Criteria
Sustainability Criteria
Developments must meet BOTH of the following criteria:
- Minimum EPC B for all units
- Minimum Silver rating under Next Generation Project Criteria
Financial Benefit
Fee reduction of up to 1.0% of total loan
Social Impact Criteria
Development must meet EITHER of the following criteria:
- Minimum 50% of units qualifying as affordable housing;
- Project located in a local authority ward ranked within the highest 3 deciles of deprivation for the appropriate country.
Financial Benefit
Fee reduction of 0.5% of total loan
Commercial Impact Loan
Sustainability Criteria
Developments must meet the following criteria:
- EDGE Certified to a minimumstandard of 20%+
Financial Benefit
Fee reduction up to 1.0% of total loan
Social Impact Criteria
Developments must meet the following criteria:
- Project located in a local authority ward ranked within the highest 3 deciles of deprivation for the appropriate country
Financial Benefit
Fee reduction of 0.5% of total loan
