Lloyds Banking Group launches Sustainability Finance Framework with the aim to build more homes with higher sustainability standards
The framework supports the commitment to expanding the availability and affordability of safe, high quality and sustainable housing by helping housebuilders finance new homes.
The framework sets out how the banking group will help housebuilders access finance to build more sustainable homes through one of three existing propositions:
- The Clean Growth Financing Initiative (CGFI) which provides discounted financing for sustainability projects for smaller and medium sized housebuilders
- Sustainable Development Loans (SDLs) which provide discounted financing for sustainability projects within the housebuilding sector for larger clients
- Sustainability-Linked Loans (SLLs) available for larger customers, which incentivise the borrower’s achievement of ambitious, predetermined sustainability performance objectives
It also incorporates the recent creation of additional sustainability standards for new build homes in the UK, which the Group has helped develop alongside NextGeneration.
David Cleary, managing director, Housing, Lloyds Banking Group said:
“The demands on UK housebuilders are significant - evolving building regulations, increased focus on low-carbon and biodiversity, consumer demand for greener homes, and rising costs. Our ambition at Lloyds Banking Group is that we work with these housebuilders to help meet these challenges and contribute towards the UK’s Net Zero goal. The propositions set out in the Sustainability Finance Framework increase access to incentive-based finance to businesses across the housebuilding, real estate, and wider construction sector, and can drive better, more consistent practices, sustainability standards and outcomes for businesses and their customers.”
Shaun Walden, head of Sustainable Finance and Climate Change, DNV UK added:
“It is great to see Lloyds Banking Group publish this holistic Sustainability Finance Framework for the new build housing sector. This innovative report is one of the first sector-based financing frameworks issued by a financial institution and shows the focus Lloyds Banking Group has on this sector. The framework will be welcomed by the growing ESG community.”
Lloyds customers also have access to the bank’s Green Buildings Tool – a digital insights calculator that helps to identify, evaluate, and understand the estimated outcomes of potential investments to make properties greener.
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