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EEFIG

The EEFIG Working Group on Risk assessment

Timeline of WG activities

  1. December 2020
    Submitted Intermediary results report of the working group, including:
    • Overview of knowledge base and identified relevant initiatives
    • Progress on work in national hubs and the methodology hub
    • Outline of target activities for working group in 2021
  2. January-February
    Identified "landing points" for report key points and where the WG results can be useful
  3. February 2021
    Development on issues paper on emerging conclusions
  4. 7th July 2021
    Draft final report was submitted to the EC for review
  5. November 2021
    Final Report
  6. 28th April 2022
    Published Report

Emerging results

This EEFIG working group has uncovered and robustly assessed new evidence from nearly a million mortgages in Europe to conclude that there is a statistically relevant correlation between the energy performance of building collateral and mortgage credit performance. This conclusion is backed by years of academic and parallel studies which point in a similar direction and that were reviewed by the WG over the last two years.

The bulk of the evidence produced by this working group’s members has come from the UK, Finland, Germany and Italy, and in two years of 30-40 national hub meetings in seven geographical areas, no evidence has been presented that demonstrates different results – as no further evidence is forthcoming. While national circumstances differ greatly, there was a general consensus that were EPC data more widely available in different markets it would likely reveal similar findings.

The technical and research work of this working group would tend to support the Commission’s position on energy efficiency and mortgage collateral value which was contained in its new sustainable finance strategy adopted on 6th July. Specifically that measures to enhance energy efficiency of a mortgage collateral can be considered as increasing property values.

Further, as a result of the statistical work undertaken by members of the UK, German and Scandinavian hubs, this WG hopes that energy efficiency is considered as a specific component of the EBA’s 2023 assessment of whether a dedicated prudential treatment of exposures related to assets and activities associated substantially with environmental and/or social objectives could be justified. Already the evidence provided here by NBS contributes to that and members of this working group hope that by 2023 other evidence will also emerge from Germany, Netherlands, Scandinavia, Spain, France and Italy on this point.

WG External Communications

Final report on risk assessment

SR8 Presentation of main results and conclusions
English
(461.72 KB - PDF)
Download

Peter Sweatman

Peter Sweatman

WP leader

Peter has 30 years' experience in finance, climate finance and providing strategic advice to companies, structuring energy efficiency investments and managing multidisciplinary projects in Europe and the G20, exchanging good practices and capacity building.

 

Markus Seifert

Markus Seifert

WP co-leader

Markus has more than a decade of experience in management consulting within the financial industry, where he has been working with banks, asset managers, and supervisory authorities.

Markus is Partner at d-fine GmbH, a leading European management consultancy.