Relendex sets itself a target for green loans
Relendex is targeting 60% of its new sustainability loans by the end of next year.
Paul Sonabend, executive chairman of the peer-to-peer real estate lending platform, said the company’s green credentials should appeal to retail and institutional investors, amid the growing trend of environmental, social and governance investing ( ESG).
Read more: FCA outlines plans to tackle greenwashing
“In 2021, 30% of the money we lent went to cradle-to-grave sustainable developments,” Sonabend said. News Peer2Peer Finance.
“To be considered a ‘green’ loan, every part of the construction process must be considered sustainable. We work with the most innovative homebuilders who build the most wonderful housing stock that costs little or nothing to light and heat.
“Our goal is for 60% of new loans to be for sustainable development by the end of 2023 and we want the market to know that we are not afraid to finance innovative and sustainable buildings using new techniques. We see ourselves as part of a much larger eco-environment in an industry that has not always been green.
Read more: Two more months before the Peer2Peer Finance Awards!
Sonabend noted that there are many institutions that want to deploy ESG funds but are afraid of greenwashing. This is when companies claim to do more to protect the environment than they actually do.
“[Our sustainable development loans] should appeal to a large number of retail investors sophisticated enough to qualify to be our lenders,” Sonabend said.
“Our call is for institutions that understand they have a greater purpose in life than just getting a return.”
Read more: Green Evolution: Exclusive interview with Paul Sonabend of Relendex