Engage for ESG activation investments

Introduction

The EU Green Deal emphasizes the twin transition: by linking the digital transformation to the green transition, Europe can empower traditional sectors and strengthen its position in the global market. In this context, by translating ESG funding needs into consumer products and vice versa, we can create a future-proof data framework for green mortgage financing, crucial for a successful European decarbonisation.

Objectives of ENGAGE

ENGAGE aims to provide a solution based on a single data disclosure format for mortgage funding and regulatory purposes encompassing the most relevant European ESG regulations, such as:

1. EU Taxonomy
2. EU GBS
3. Mortgage credit directive – Directive 2014/17/EU

Key Data Fields Identification

Looking at the different templates and disclosure requirements, we identify the key data fields significant to assess the energy efficiency information of green mortgages. Once the critical fields have been identified, we will harmonise the definitions with the existing reporting templates. Finally, a standardised data template will be developed in line with the current market standards.

Operationalization of the Standard Template

The standard template will be operationalized by creating a Green Investments Portal (GIP) with the following objectives:

• Simplifying access to and comparison of green data
• Offering consumers a mortgage loan that rewards improvements in the energy label of their property
• Supporting consumers in realizing the conversion of their property and obtaining new energy labels

Pilot Implementation

GIP will not remain only a technical-financial due diligence mechanism; it will be piloted in the Netherlands and Spain. Furthermore, in Spain, digital one-stop shops will be created to facilitate the retrofit process by accompanying and assisting consumers.

Enhancing Business Opportunities

The combination of econometric risk-based methodologies with a human-in-the-loop and privacy-by-design approaches will enhance business opportunities for local contractors and companies, while paving the way towards a more ethically and economically sustainable built environment for all.