This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Sustainable Finance is a crucial tool to support the finance industry in reorienting capital flows and investment towards achieving global sustainability goals. Green Building Councils (GBCs) around the world have been at the forefront of catalysing sustainable finance for many years at a local, regional and global level.
To support this movement, WorldGBC has launched the Sustainable Finance Taskforce, which will amplify and build upon the work carried out by our network in order to strategically convene the finance community and built environmental professionals, as well as leverage our influence to drive the sustainability agenda across the real estate industry.
Background
Real estate is a major asset class accounting for two-thirds of global real assets and is at risk from both physical and transition risks. At the same time the built environment has a significant impact on our planet accounting for 37% of energy related emissions, generating approximately 100 billion tonnes of construction, renovation and demolition waste every year, and being responsible for a significant share of extracted materials and global water consumption.Tackling and drastically reducing both the risks to built assets and their impact on our planet requires large-scale transformation, backed by the upscaling of investments and funding options.
GBCs have been at the forefront of sustainable finance for many years, using tools such as green building certifications which many GBCs operate. These have become a de-facto gold standard for many sustainable investments.
WorldGBC has leveraged this pioneering work, shaped and defined green mortgage standards, influenced the recommendations of the first Technical Expert Group (TEG) on climate mitigation criteria for the EU Taxonomy, and subsequently steered the definition of technical screening criteria for the building sector in the EU Platform on Sustainable Finance.
Our recognised expertise in sustainable finance comes from decades of experience in both defining the environmental performance standards for buildings and infrastructure, as well as through GBC certification schemes and our network’s role as a catalyst for political and industry action to champion sustainable buildings through advocacy, training and awareness raising.
Sustainable Finance Taskforce
WorldGBC’s Sustainable Finance Taskforce comprises GBCs from around the world alongside our corporate partners. Its objectives are:
1
Strategise
2
Connect
3
Convene
Exchange on global, regional and local sustainable finance developments, opportunities and risks.
Lead strategic discussions on how to proactively address the finance sector, calling for and working towards alignment across different frameworks, metrics and targets.
Connect the finance and built environment sectors.
Foster a collaborative and direct exchange between all stakeholder types across the built environment supply chain including financial actors.
Scope areas of work that would benefit from collaborative efforts and require an in-depth exchange, as well as convene individuals with technical expertise in Working Groups.
EU Taxonomy Working Group
In a wave of sustainable finance policy reform, the European Commission released the EU Taxonomy, defining sustainable economic activities to tackle greenwashing in financial and corporate reporting.
The EU Taxonomy Working Group supports the development of the sustainability criteria for the built environment and facilitates the implementation of the EU Taxonomy. Specifically it aims to:
1
Build capacity
2
Build consensus
3
Build influence
Provide simple introductory guidance on the EU Taxonomy.
Ensure the EU Taxonomy and future taxonomies in other regions are fit for purpose for the built environment.
Convene key stakeholders to agree on national interpretation of Taxonomy regulation.
Form a group of relevant sector experts, from across the value chain, that will help advise and shape WorldGBC positions related to the development of the EU Taxonomy and similar frameworks.
Ensure WorldGBC’s position continues to shape the evolution of the Taxonomy.
Strengthen WorldGBC’s position of leadership on sustainable finance policy.
Ensure that the criteria relevant for buildings and the construction supply chain are:
- Aligned with WorldGBC’s global North star goals for climate, health and resources
- Practically implementable and understood by the industry.
ESG Working Group
Financial actors looking to green their portfolios seek voluntary reporting frameworks and data to comply with environmental objectives. As a result top-down ESG reporting frameworks, including those in the real estate market, have proliferated.
The ESG Reporting Working Group seeks to drive alignment of top-down frameworks with local contexts building on GBCs’ deep understanding of local markets, environmental conditions and policy frameworks. Specifically it aims to:
1
Thought leadership on ESG frameworks
2
Foster alignment on ESG reporting
Forge a common voice
GBC’s have a global voice on sustainable finance that can help communicate with global bodies.
ESG Working Group acts as a focal point for investors and entities.
Inform the market
Investors can reach out to obtain information about the principles that should drive net zero strategies globally, the relevance of rating tools and how the WorldGBC network can help investors with their ESG reporting.
Enhance alignment between rating tools
Support GBCs’ efforts to align rating tools globally and enhance comparability between national tools and relevant international frameworks for sustainability and ESG reporting.
Build capacities amongst GBCs to drive change.
News and events
Participating Green Building Councils
Founding Partners
