Homepeer to peer lendingP2P property lenders pioneer green change

P2P property lenders pioneer green change

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Peer-to-peer property lenders have been on an eco-crusade in recent months, introducing a series of environmental policies designed to offset the impact of their property development projects.

Proplend has announced that it plans to become carbon neutral by the end of this year by offsetting 100 per cent of its annual emissions through the replanting of trees.

Kuflink expects to reach its net zero carbon goal by 31 January 2023 by migrating its systems to the cloud and automating as much as possible, as well as funding green innovation in property developments.

Read more: Two thirds of consumers want more sustainable investment options

Meanwhile, CrowdProperty has pledged to reduce its carbon emissions, and is looking at how it can revise its lending facilities to reward those developers who adopt sustainable measures.

And Assetz Capital is reducing its carbon footprint by adopting new eco-friendly methods of construction.

Property development is known to be a key contributor to carbon emissions, and the world is waking up to the necessity of net zero economies.

Read more: Is P2P lending better than ESG funds?

According to a report by Savills, the built environment is responsible for almost 40 per cent of the world’s energy and related emissions. Similarly, the 2020 Global Status report for Buildings and Construction found that real estate is responsible for 38 per cent of global CO2 emissions.

From supply chain pressures to greenfield disruption, property developers have been in the crosshairs of environmental campaigners for many years. And while there has been a notable shift towards environmentally friendly construction methods in recent years, progress has been slow.

Read more: Over half of P2P investors consider ESG when investing in the sector

However, P2P property development platforms are well-positioned to pioneer carbon-offsetting projects and carbon-saving construction techniques.

P2P platforms are smaller and more flexible than mainstream lenders, and they tend to have a much closer relationship with their borrowers, setting key milestones for each development and making regular site visits for the duration of the project. This means that any potential environmental issues can be identified early, and solutions can be implemented as quickly as possible.

Furthermore, by making use of new green construction methods and technologies, these platforms can set an example to other property lenders on how to effectively green their own property development portfolios.

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