Powered by Lexis+®
Jurisdiction(s):
United Kingdom

ESG in UK real estate finance: market standards, MEES/EPCs, green and sustainability‑linked loans, due diligence, loan documentation provisions and FCA anti‑greenwashing considerations

Practice notes
imgtext

ESG denotes environmental, social and governance. Its role in real estate finance (REF) is expanding as both lenders and borrowers pay closer attention to how funding and its application affect the wider community. In turn, ESG considerations can now directly shape borrowers’ duties within finance documents, while also informing lenders’ credit analysis and the pricing of debt...

This Practice Note covers:

  • the principal ESG initiatives and guidelines relevant to REF
  • the minimum energy efficiency requirements for buildings
  • the adoption of green loans and sustainability-linked loans in the REF market
  • the main ESG due diligence points in REF transactions
  • ESG clauses that apply in REF documentation
  • greenwashing considerations

Industry body initiatives and guidelines

Multiple industry-led efforts have shaped, and continue to influence, this area of the REF landscape...

Green loans and the Green Loan Principles (GLP)

Green loans comprise any form of loan instruments and/or contingent facilities (including bonding lines, guarantee lines or letters of credit) where the proceeds, or an equivalent sum, must be used exclusively to finance or re-finance...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
Web page updated on 22/05/2026

Popular documents

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Read More Right Arrow

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Read More Right Arrow

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Read More Right Arrow

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

Read More Right Arrow