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Measuring the impact of the escalating climate crisis on commercial real estate is becoming imperative but the sector is still learning how to do it.
Private debt is moving into a new era of impact lending and sustainability-linked loans.
A quarter of European private credit deals involve an ESG-linked margin ratchet, according to analysis by consulting firm Lane Clark & Peacock.
A £57m facility for Urban Logistics REIT requires the borrower to improve sustainability across its portfolio.
Credit funds are ramping up efforts to influence gender diversity among borrowers.
The PRI suggests LPs ask about pre-investment screenings, post-investment monitoring and how the firm analyses the impact of its ESG approach on financial performance.
An anti-ESG backlash in some US states has created challenges for private markets managers but there are few signs of ESG moving down the priority list elsewhere.
Progress has been made but more still needs to be done as GPs strive to make their sustainability efforts meaningful.
In private markets climate investing, as with other impact investing themes, capital has gravitated primarily towards equity strategies. This is about to change.
Nearly half of private credit managers had included one in a deal when surveyed last year, said Sarah Miller, senior vice-president at the investment consulting firm, in a video interview at the Impact Investor Global Summit.