Deal aims to enhance the second charge lender’s understanding of the ESG credentials of its asset pool
Second charge lender Equifinance has announced a new partnership with climate data provider Kamma.
The collaboration aims to enhance the lender’s understanding of the environmental, social, and governance (ESG) credentials of its asset pool.
The demand for ESG data has been increasing, driven by investor concerns over climate risks, which translate into investment risks. Investors are also under pressure to meet their own climate-related financial disclosure requirements and net-zero commitments.
With the government focusing on housing decarbonisation, Kamma believes the need for ESG data in the residential mortgage sector will only grow.
Through the partnership, Kamma will supply Equifinance with regular climate data and analysis on its mortgage book, including new originations. This data will provide insights into the environmental performance of the assets underlying Equifinance’s securitisations.
The insights gained from Kamma’s data will also help Equifinance meet financed emissions disclosure requirements, manage climate transition risks within its mortgage portfolio, and shape its climate strategy and targets.
“We are thrilled to partner with Kamma to ensure both our investors, and ourselves, are up to speed on the latest energy efficiency and environmental performance of our mortgage book,” said Chris Payne (pictured left), chief financial officer of Equifinance.
Joe Webb (pictured right), chief growth officer of Kamma, added that they too were pleased to partner with Equifinance and deliver the climate data and analytics both the lender and their stakeholders need.
“It’s impossible for investors to evaluate the environmental performance of property assets without the right data,” he said. “Finding the right environmental data is a huge challenge for originators due to the incomplete, unreliable, and inaccurate nature of EPCs. We’re delighted to partner with Equifinance to help them overcome this challenge.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
