Sustainability in Dutch real estate finance – now really part of the deal
15 November 2021
While the sometimes obtrusively advertised focus of some market parties on sustainability has over the past few years been regarded as lip service by many, sustainability has by now swiftly become a factor that can really no longer be ignored by financiers, investors and borrowers alike. It is clear that many stakeholders are willing to and are now feeling the urgency to apply an ESG (environment, social and governance) policy. Real estate, in particular, is a sector where sustainability can play a specific and crucial role. In addition thereto, legislators and supervisory authorities are setting new green and sustainability standards and imposing legislative requirements, compliance with which is also resonating in real estate finance. Still, many stakeholders appear to be uncertain as to the exact "why and how" of these legislative requirements. This blog briefly sets out the background of sustainability requirements that are particularly relevant in the context of commercial real estate finance and, accordingly, the bankability of commercial real estate investments and sheds light on what to expect in this regard going forward.
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