Brookfield is no stranger to sustainability goals – managing renewable power assets along with its infrastructure, real estate, private equity and credit investments.
Now it’s closed $970 million in green and sustainability linked loans for three major projects. This is the latest of $1.8 billion in green loans certified by the Climate Bond Initiative (CBI) for Brookfield.
Brookfield claims the $450 million development loan secured against One The Esplanade, Perth, is the largest green development loan in the Australian market certified by the CBI.
The two other loans are $270 million for the newly completed 405 Bourke Street, Melbourne and $250 Million for Brookfield Place, Sydney – both structured as green loans and sustainability linked loans.
“Incorporating climate change implications as part of underwriting is consistent with our ESG practices and is the smart thing to do to minimise risk over the long term. Our investors and financiers are increasingly asking us to look for more ways to reduce our carbon footprint in response to their own ESG priorities”, said Shane Ross, Brookfield Asset Management’s head of portfolio for real estate in Australia.
Brookfield claims that green financing of existing assets creates a further incentive to improve their performance through smart operations because a building that meets sustainability-linked hurdles becomes a better performing asset with a lower environmental impact.
Green-financed new builds can embed sustainability from the start to set a high ESG bar over the asset’s lifetime.