pbb's Green Loan concept is founded on a proprietary scoring model and on the EU Taxonomy
Funding via green bonds has been ongoing since the first quarter of 2021
Entire loan book classification as a basis to define targets
Within the scope of further aligning its business activities with ESG criteria, pbb Deutsche Pfandbriefbank is expanding its product range and now provides green loans for the purchase or development of commercial real estate properties that comply with strict environmental criteria. Furthermore, pbb supports investments to improve the sustainability of buildings. pbb has been funding part of its lending business with green bonds since the first quarter of 2021.
"By offering green loans, we support our clients in their endeavours to invest in sustainable real estate and with their ESG positioning. Together with the property industry, we - as one of the leading real estate finance providers - are making a substantial contribution to achieving a climate-efficient real estate sector and reaching the EU climate targets," said Thomas Köntgen, Deputy CEO of pbb and responsible for commercial real estate clients.
pbb has developed a standalone scoring model for green loans which currently comprises ten factors in the three categories "energy efficiency", "building certification", and "additional sustainability factors". The criteria are based on market requirements and are in line with the EU Taxonomy. Buildings compliant with the EU Taxonomy also qualify for green loans.
The requirements for properties, which clients can finance via pbb's green loans, go beyond the common criteria of low energy consumption. The scoring model awards a maximum of 100 points, of which up to 50 points are awarded for energy efficiency and up to 20 points for green building certification. A further maximum of 30 points can be awarded for additional sustainability factors, such as avoidance of soil surface sealing, the availability of (and distance to) the public transportation network, as well as the use of recycled materials for construction or the type of heating and use of green electricity. Properties with a total of at least 60 points qualify for a green loan.
pbb has been systematically analysing new business based on environmental criteria since 2020, subsequently issuing the first green bond on this basis in the first quarter of 2021. The Bank is continuing to perform this analysis, aiming to provide transparency on compliance with ecological criteria for the entire loan book, and hence to set corresponding targets for the near future.
Walter Allwicher, +49-89-2 88 02 87 87, walter.allwicher(at)pfandbriefbank.com
Nina Lux, +49-89-2 88 01 14 96, nina.lux(at)pfandbriefbank.com