Financing the future
Cost and compliance will always form a balance of considerations businesses must weigh up as they examine ESG commitments. To that end, we asked occupiers several questions relating to ‘ESG/green financing.’
A large majority are either currently obtaining (40%) or considering obtaining (47%) ESG/green financing rather than standard debt financing, representing an increase on the previous year. Just 1% are not obtaining, or not considering obtaining, this type of financing.
Is your organisation currently obtaining or considering obtaining ESG/green financing over standard debt financing?
Of the positive responses:
cite operational energy cost savings as the main benefit of ESG/Green financing over standard debt
believe it affords their business better alignment with ESG goals, measurement and reporting
see it as a way to combat regulatory and obsolescence risk
suggest it is a route to accessing a wider range of capital
Conversely, the minority of occupiers who suggest their organisation won’t take advantage of ESG/Green financing believe cost savings would not outweigh the administrative load (39%).
The same proportion (39%) feel the risk of KPI-linked default creates unwanted uncertainty, while 37% claim ESG reporting and compliance obligations are too onerous.
