Page 8 - Green Builder Magazine March-April 2019 Issue

Green Building NEWS

The Latest on Sustainability and Renewable Energy

New ‘Green’ Will Mean New Green Homes

Over the next few years, sustainability-based lending is poised to become the new normal.

T’S GOING TO BECOME EASIER TO BUILD—and buy—green homes in the
next few years, due to an expected increase sustainability-based loans.
According to GreenBiz Group (GBG)’s 2019 State of Green Business
I Report, green-linked funding reached $36.2 billion in 2018. That’s up from
$32 billion in 2017, according to environmental finance news and analysis
firm Environmental Finance, and it’s a trend that’s expected to continue into
the next decade. Both companies consider green lending to be a “rising star”
among businesses large and small, mostly because banks see sustainability-
minded companies as a safer investment than traditional borrowers.
“A company’s focus on sustainability performance can be a measure of
innovation, as well as an indicator of good management,” notes report co-
author Libby Bernick, managing director of S&P Global-Trucost corporate
business. Such companies typically outperform others and represent a lower
credit risk, she adds.
Another attractive element is the fact that borrowers can use the loans for CREDIT SPOOH¢ISTOCK
any corporate general purpose, instead of only for specific green projects or
Dollar wise. Sustainability-minded companies are making a good
GOING GREENER EVERY DAY impression with banks—leading to better, less-expensive business loans.

Other key findings in the 2019 State of Green Business Report include: technology, GBG notes. And unlike the other common funding source, green
■ Companies’ greenhouse gas emissions decreased by 9 percent from bonds, sustainability loans are often easier to arrange and have lower lending

2013 to 2018. thresholds, making them more accessible to smaller companies.
■ Eighty-five percent of S&P 500 companies published a sustainability Green loans are also going to become easier to find. Early innovators such

report in 2017, up nearly 20 percent in 2013. as Barclays, ING Bank, BNP Paribas and BBVA are carrying 10 to 15 percent
■ Twenty-eight percent additional companies set carbon emission and of their lending portfolios as “responsible finance” and plan to at least double

water-use reduction targets over the past five years. that total within the next five years. Yann Gerardin, head of corporate and
■ Current carbon reduction targets make up 16 percent of the total institutional banking at BNP Paribas, notes that interest rates will ultimately

needed to meet the Paris Agreement’s global warming limit of less be driven by a company’s degree of environmental, social and governance
than 2° Celsius by century’s end. (ESG) performance.
The State of Green Business Report is available at https://bit.ly/2NZrl3S. GB

USGBC Unveils New Version of LEED

Version 4.1 will tighten performance standards for green building construction.

b
EGISTRATION IS NOW OPEN for the U.S. Green Building Council for the U.S. Green Building Council buildings and continues to expand the marketplace for LEED,” he says. uildings and continues to expand the marketplace for LEED,” he says.
(USGBC)’s newest version of its LEED green building The changes also advocate for improved performance throughout
certification program, LEED v4.1. Participation is open to new the life of buildings, rewards leaders based on their performance and
R construction projects as well as interior spaces with LEED incorporates performance reporting to enable building owners to track
v4.1 BD+C and LEED v4.1 ID+C. progress towards environmental, social and governance goals, he adds.
According to USGBC President and CEO Mahesh Ramanujam, LEED Users can register using LEED Online, review the LEED v4.1 Beta Guide,
v4.1 will help make the rating system more accessible to more projects. and download the LEED v4.1 rating system. The latest education videos and
“This newest beta version updates performance thresholds and referenced live online webinars featuring USGBC subject matter experts are also available.
standards to ensure LEED remains the global leadership standard for green All sites are accessible from https://new.usgbc.org/leed. GB

6 GREEN BUILDER March/April 2019 www.greenbuildermedia.com

6-7 GB 0319 News.indd 6 4/8/19 9:27 AM