In the fast paced business environment prioritising Environmental, Social and Governance (ESG) factors is no longer just a choice it is a strategic imperative for long term competitiveness and success.
Across industries there is a growing recognition of the need to integrate ESG principles into business strategies to help drive a positive environmental and social impact whilst ensuring the long term financial feasibility.Â
Sustainability has emerged as a key priority in the UK, bridging finance is emerging as a powerful tool that can expedite energy efficiency initiatives and advance ESG targets.
The urgent need for sustainability initiatives has seen bridging lenders being called upon to play their part by leveraging innovative approaches that can navigate Environmental, Social, and Governance (ESG) principles.
Understanding ESG Linked Loans and Bridging Finance
What are ESG Linked Loans?
ESG linked loans are those that tie the terms of borrowing to ESG performance targets. These loans incentivise people and companies to improve their sustainability metrics by offering favourable terms for meeting predefined ESG criteria.
MS Lending Group's ESG product
MS Lending Group will lend upto 85% on residential purchases, and upto 75% on commercial purchases. Both of these products are available when there is a signed agreement for lease in place with a: Housing Association, Registered Provider, Community Interest Companies ( C.I.C ), or Registered Charity.
Furthermore, clients purchasing a property will benefit from a 1% refund of the total gross loan amount on redemption, when improvements to the EPC rating are made.Â
You could use this kind of bridging loan to improve insulation, upgrade to energy efficient appliances and or install solar panels, all these steps will also help to add value to your property.
How ESG Bridging Loans Contributes to Energy Efficiency
Bridging loans from trusted providers such as MS lending Group can play a significant role in helping companies improve their ESG performance, specifically their environmental performance.Â
Below is a list of ways an ESG bridging loan can contribute to enhancing environmental practices at businesses.
Energy Efficiency Upgrades For Businesses
Utilising an ESG bridging loan to fund energy efficiency upgrades is at the top of our list as companies can easily use the loan to invest in upgrade their energy efficiency in their facilities.Â
From simply upgrading their HVAC systems, improving insulation to retrofitting buildings with energy saving technologies. Not only will the upgrades help protect the environment, it'll also save companies money by lowering their energy consumption and lower operational costs in the long term.
Investment in Sustainable Technologies
Commercial bridge loans enable companies to invest in sustainable technologies and infrastructure. With investment in electric vehicle charging stations, wind turbines or solar panels companies can help lower their emissions and save money on bills such as electricity and fuel.Â
Not only will these upgrades promote renewable energy usage but they also demonstrate a commitment to reducing fossil fuel usage and transitioning to a low carbon economy, aligning with the UK government’s aim to reach its target of net zero emissions by 2050.
Green Property Development
When developing a property the environment should be at the forefront of developers minds, using an ESG bridging loan can help finance the eco-friendly projects.
The eco-friendly projects can involve installing renewable energy systems, developing energy efficient buildings and or implementing sustainable construction practices.
When companies support green initiatives they can reduce their carbon footprint and contribute to environmental conservation.
Environmental Compliance
An ESG bridging loan can also be used to finance projects aimed at achieving environmental compliance with regulations and standards.
If you need to carry out remediation efforts to address environmental contamination, implement pollution prevention measures or simply ensure that your organisation adheres to environmental permits and licences.
Carbon Offsetting Projects
Offsetting carbon emissions will help companies to mitigate their environmental impact and contribute to efforts in combating climate change.
Reforestation initiatives, renewable energy projects or methane capture programs are being invested in by companies with the financial support of bridging loans for carbon offsetting.
Addressing the Urgency of Energy Efficiency
ESG linked loans are gaining traction incentivising borrowers to incorporate sustainability into their operations.
By extending this concept to bridging finance, trusted lenders such as MS Lending Group are encouraging borrowers to prioritise energy efficiency and environmental stewardship in their projects.
In the UK, buildings contribute significantly to carbon emissions so improving energy efficiency in the built environment is essential. Energy efficiency plays a pivotal role in combating climate change and achieving sustainability goals, the upfront costs of such projects often pose a barrier that's where sustainability linked loans like the ESG bridging loan is effective.
The commercial bridge loans can provide a timely injection of capital allowing businesses and property owners to undertake energy efficiency upgrades without delay.
Commercial bridging finance provides the necessary liquidity to kickstart your eco friendly initiatives.
Reduce your carbon footprint now with help from MS Lending Group a trusted lender of bridging finance in Manchester. Contact us today.