Bridging & Commercial’s deepest condolences go to the Royal Family and the countless people who loved Her Majesty The Queen Elizabeth II. “It is a source of great pride to me that the leading role my husband played in encouraging people to protect our fragile planet lives on through the work of our eldest son Charles and his eldest son William. I could not be more proud of them,” the Queen said at COP26, after Prince Philip’s death. The Sept/Oct Bridging & Commercial Magazine, The ESG Issue, is dedicated to her.

It’s been one year since The Sustainability Issue of Bridging & Commercial Magazine and, while there has been progress in the lending sector (and I am purposely grouping the wider mortgage market with this, as it’s not just down to our industry), we are still far behind where we need to be to make significant change—and in time. This is why members of the newly formed ESG Forum, made up of specialist lending pioneers in sustainable finance, have been getting together regularly to solve the multiple conundrums of bringing eco-friendly housebuilding into the mainstream. I was invited to chair the latest discussion on how to commercialise the green finance space in a bid to accelerate its adoption, accessibility, and profitability for developers.

Elsewhere, we look at whether the mammoth task of retrofitting the UK’s old and draughty housing stock is indeed feasible by the government’s nearing deadlines. Considering that price rises are predicted to continue into 2023, the undertaking is clearly in jeopardy. With more homes set to be built in areas prone to flooding, we also ask if the insurance industry is ready and able to cope. As climate change brings about more devastating weather—as seen recently in Pakistan—insurers around the world need to act now.

•   EXCLUSIVE: £931.8m of regulated bridging loans completed in 2021
•   Why partnering with the right lender is integral when times are uncertain

We’ve not neglected the ‘G’ in ESG, either: you can read Global Counsel’s Felicity Hall’s column on good governance. In particular, why board composition and pay and the risks surrounding lobbying and responsible political engagement have seen significant attention over the past 12 months. We also take a look at formal and fun activities that firms are doing to improve their social stance—in the hope this inspires you to do the same.

In addition, we interview a number of Islamic finance providers about the ways in which ESG is built into their propositions; talk to Arc & Co’s Georgie Crocker on how funds are under the most scrutiny to provide transparency over their sustainability investment criteria; and, following two high-profile broker acquisitions, we ask Begbies Traynor Group about its plans for the future and how the new division will be able to arrange finance for a wide variety of renewable technologies and offer advice on sustainability solutions for all businesses.

Despite the majority of the conversation currently centred on the sweeping changes around the cost of living crisis, base rate rises and, most recently, scores of lenders pulling or repricing products due to market volatility, the importance of ESG has never been greater. We hope you find it helpful to read about what other companies are doing to improve their efforts in this regard and that it helps shape or enhance your own.  As the Queen famously said: “It’s worth remembering that it is often the small steps, not the giant leaps, that bring about the most lasting change."

The ESG Issue can now be read online.