CREFC Europe has published new guidance to accompany the Integrated Disclosure Project’s (IDP) Real Estate Debt Template, providing practical recommendations for how lenders in the UK and European markets can integrate the tool into their due diligence processes.

The guidance sets out a staged “maturity” framework to help lenders incorporate sustainability considerations into credit analysis in a proportionate way. It focuses on three core assessment areas; energy efficiency and transition risks, physical climate risks, and governance and strategy. The guidance explains how lenders can use the IDP Real Estate Debt Template lenders to establish foundational compliance as well as expanding their due diligence to include capital expenditure planning, operational energy data and longer-term climate resilience considerations.

The IDP Real Estate Debt Template is a new market-led disclosure tool designed for use at loan origination to help lenders and borrowers share consistent, decision-useful sustainability information in real estate debt transactions.

Download the CREFC Europe guidance here.

Learn more and download the IDP Real Estate Debt Template here.