Business Continuity ESG Blog

What the Building Says — and What the Loan Officer Hears

Written by William Tygart | 6/19/25 8:32 PM

 

One of us sits across from the lender with a pitch deck and a spreadsheet.
The other opens the underwriting folder and quietly wonders:

“Do they actually know what’s going on in this building?”

In 2025, lending decisions aren’t just about return — they’re about resilience.
And the numbers aren’t enough anymore.
Now, the building has to testify.

🧠 What the Owner Says vs What the Lender Needs to Hear

Owner’s Pitch Lender’s Silent Question
“We’re LEED certified.” “Five years ago. Has anything been updated since?”
“Energy use is stable.” “Show me the real-time logs.”
“We’ve had no major losses.” “But do you have documentation proving the last one was fully remediated?”
“Our tenants are satisfied.” “Any IAQ complaints? Retention issues? Insurance hikes?”

The deal doesn’t break from bad numbers.
It breaks from unanswered questions.

📊 The 5 ESG Metrics That Actually Move the Needle

  1. Energy Usage Intensity (EUI)
    → Lender wants trendlines, not just last year’s bill.

  2. Carbon Reporting (Scope 1 & 2)
    → Is this building a future regulatory target?

  3. Indoor Air Quality (IAQ)
    → Will this asset trigger tenant turnover or reputational risk?

  4. Resilience Planning
    → What happens after a flood, blackout, or fire? Is there a file?

  5. Vendor & Material Traceability
    → Can they verify the ESG claims in the report?

Every one of these is a trust signal — or a red flag.

🧩 How the Deal Gets Stronger When Both Sides Align

If you're the owner or asset manager:

“Here’s not just the ESG report — here’s the raw data. Labeled, timestamped, verified.”

If you're the lender or ESG screen team:

“Tell us where the risk lives. We don’t expect perfection — we want proof you’re tracking it.”

When we both stop pretending and start documenting,
the deal moves faster — and the trust gets real.

🧠 Shared TL;DR

In 2025, capital is cautious.
And buildings don’t get funded on promises.

They get funded when the person running the asset
and the person underwriting the risk
are reading the same reality — and willing to share it.

We don’t need more performance slides.
We need evidence that holds up when the room gets quiet.