ESG revolution: both a technical challenge and an opportunity for European banks

Part II: mortgages, a new tool for sustainable development


In Europe mortgages represented nearly €9,000 billion outstanding at the end of 2020. This activity is set to undergo an “ESG revolution” just like the other banking sectors. With greater availability of lending for the current or future most virtuous properties, potentially at a more advantageous cost for “green” projects, in a few years mortgage lending could become a tool reinforcing the energy transition

The stakes are high: housing remains one of the major sources of greenhouse gas emissions in Europe. But we have to be able to properly assess a building’s carbon footprint. It was not easy to find and produce the comparable data in this report based on the available sources. We note that European commitments in terms of the energy performance of buildings look difficult to achieve without any additional tax incentives, in our view.

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Article drawn up on 28 March 2022. This document is not pre-contractual or contractual in nature. It is provided to its recipient for information purposes. The analyses and/or descriptions contained in this document should not be interpreted as advice or recommendations from Lazard Frères Gestion SAS. This document does not constitute an offer or invitation to purchase or sell, nor an encouragement to invest. This document is the intellectual property of Lazard Frères Gestion SAS.

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