Login
- Dokumenttyp:
- Masterarbeit
- Autor(en):
- Thesis
- Titel:
- Benchmarking Sustainability: Critical Evaluation of ESG Scoring Systems in Bank Real Estate Financing
- Abstract:
- This thesis investigates the use of ESG information in the context of CRE (Commercial Real Estate) credit decisions in AB (Airbus Bank). It critically examines the bank’s existing real-estate ESG scoring regime, identifies credit-related KPI (Key Performance Indicator)’s, and examines the role that ESG assessments play in loan approval, pricing, and LTV (Loan-to-Value) decisions in practice. Methodologically, the study takes the form of a mixed-methods research design. First, the status quo of the bank-internal ESG scorecard is mapped to major regulatory and market frameworks (EU (European Union) Taxonomy, CSRD (Corporate Sustainabil- ity Reporting Directive)/ ESRS (European Sustainability Reporting Standards), GRI (Global Reporting Initiative), PRI (Principles for Responsible Investment), MSCI (Mor- gan Stanley Capital International), and lists of sectoral KPI’s), and the coverage, mate- riality, and data requirement of what is missing from existing frameworks is checked. Second, quantitative preference deliberation-based methods are employed for calibra- tion of weights for a group of 11 asset- and borrower-level ESG KPI’s. 13 internal and external practitioners apportion 100 points among candidate indicators, and partake in a AHP (Analytic Hierarchy Process) survey. These exercises provide transparent KPI and pillar weights and enable systematic comparison between the views of banks internally and the viewpoints of developers and investors. Third, the same experts participate in semi-structured interviews, supplemented by a short Likert battery, aimed at the qual- itative analysis of the entry of ESG factors in screening, due diligence, the design of covenants, the setting of LTV’s, and the valuation of collateral. The AHP results gives 57% to E (Environment), 21% to S (Social), and 23% to G (Gov- ernance). Across methods and across respondent groups, EPC (Energy Performance Certificate), GHG (Greenhouse Gas) emissions, climate risks, and renewable energy are the core E drivers of perceived credit risk, while health & safety (S) and board quality (G) are the most decision-useful additions to the current scorecard. An illustrative case study shows the use of AHP-based weights as part of the existing NNP (Non-Natural Person) methodology used by the bank, and how this would lead to a change of an actual client’s ESG risk score based on different data availability. Interview evidence suggests widespread conceptual agreement that there is a link be- tween higher ESG quality, on the one hand, and lower long-run credit risk and superior financing prospects, on the other. In the current state of practice, however, ESG mainly has an impact on financing conditions in the form of go/no go decisions, collateral valua- tion, and qualitative structuring (such as covenants and certificate requirements), rather than through finely calibrated margin or LTV differentials. The thesis concludes by proposing a GRI-and PRI-aligned borrower questionnaire and also an implementation blueprint that applies the ESG score as a decision guide for underwriting, monitoring, and setting of initiatives across the portfolio, while highlighting the need for future quantitative validation, when longer credit outcomes time series will be available.
- Stichworte:
- ESG, CRE finance, loan pricing, LTV, ESG Score, certifications, AHP, AI4BuildingESG
- Betreuer:
- Kaufmann, Valentin
- Jahr:
- 2025
- Sprache:
- en
- Hochschule / Universität:
- Technische Universität München
- Fakultät:
- TUM School of Engineering and Design
- TUM Einrichtung:
- Professur für Immobilienentwicklung
- Status:
- Abgeschlossen
BibTeX