The Library

What is a stranded asset?

erlend.bolle@netto.eco (Erlend Bolle) — Mon, 07 Sep 2026 10:38:35 GMT

Stranded assets are investments or resources that lose value or become obsolete due to the transition to a low-carbon economy. For banks, these often include loans or investments in carbon-intensive industries like coal, oil, and gas, or carbon-intensive buildings with low energy ratings.

Many banks are reducing exposure to high-emission sectors by setting decarbonization targets and aligning portfolios with Net Zero goals.

What is transition risk?

alexander.sagen@netto.eco (Alexander Sagen) — Mon, 07 Sep 2026 10:36:33 GMT

Transition risk arises when banks face financial and operational challenges due to the shift toward a low-carbon economy. This includes adapting to new policies, technologies, and market demands aimed at reducing emissions, which can impact the value of loans and investments.

Many banks are addressing transition risks by financing renewable energy projects and phasing out investments in carbon-intensive industries. While these steps are crucial, they can be complex and disruptive.

For example, withdrawing support from fossil fuel projects may lead to stranded assets—resources that lose value as the world transitions to cleaner energy.

What is carbon offsetting?

erlend.bolle@netto.eco (Erlend Bolle) — Mon, 07 Sep 2026 10:32:02 GMT

Carbon offsetting is the practice of compensating for carbon emissions by funding activities that reduce or remove an equivalent amount of CO₂ from the atmosphere.

Many banks and organizations promote carbon offsetting through tree planting as part of their sustainability efforts. While planting trees is a positive step, the approach is often oversimplified.

Monocultures—planting just one type of tree—are common but problematic, as they can harm biodiversity and lead to weaker ecosystems. Additionally, some organizations engage in something called "conservation easements," where they pay to prevent trees from being logged.

Instead, planting a diverse range of native species ensures greater resilience and more effective long-term carbon sequestration.

What are the most important sustainability standards for commercial real estate?

borge.astrup@netto.eco (Børge Astrup) — Mon, 07 Sep 2026 10:28:34 GMT

Sustainability in real estate is guided by frameworks like BREEAM and tools like CRREM.

BREEAM (Building Research Establishment Environmental Assessment Method) is a leading sustainability assessment method for buildings, setting the standard for best practices in sustainable design.

CRREM helps real estate investors assess the carbon intensity of their portfolios and make informed decisions to avoid stranded assets.

Why is carbon emissions reporting important?

alexander.sagen@netto.eco (Alexander Sagen) — Mon, 07 Sep 2026 10:24:40 GMT

Carbon emissions reporting is a legal requirement for both commercial real-estate portfolio owners and bank loan portfolio managers. Practically, this entails tracking and reducing their carbon footprint as well as being able to prove the quality of the data they're reporting.

The Partnership for Carbon Accounting Financials (PCAF) provides a standardized framework for financial institutions to measure and disclose the carbon emissions associated with their loans and investments and the associated data quality.

What is a green loan?

erlend.bolle@netto.eco (Erlend Bolle) — Mon, 07 Sep 2026 10:22:22 GMT

A green loan is a type of financing aimed at funding projects with clear environmental benefits. These loans should align with the Green Loan Principles (GLP), which ensure that the use of proceeds, project evaluation, and reporting are all geared toward environmental sustainability.

A green loan for commercial real-estate allows banks to finance eco-friendly projects, promoting sustainable building practices and energy efficiency while meeting environmental goals.

How your bank can lead the energy transition

borge.astrup@netto.eco (Børge Astrup) — Wed, 13 Aug 2025 12:14:19 GMT

It’s 2025 and the energy transition is accelerating. More financial institutions face mounting pressure to manage climate-related risks, especially in high-emission sectors like real estate. The Rocky Mountain Institute (RMI) recently highlighted that many corporate transition assessments provide only superficial snapshots, lacking the operational detail needed for truly informed and low-risk decisions.

We’ve developed software that delivers real-time, granular insights into building performance, upgrade potential, and precise transition risk calculations. This actionable intelligence goes beyond high-level ratings and targets to reveal where banks can deploy capital most effectively to support meaningful green upgrades.

Why does green finance software matter to banks?

Used properly, green finance software is a profit generator, and NOT a cost centre. Because lending decisions based on incomplete or aggregated data miss critical nuances and opportunities for growth. A building’s transition risk depends on real asset performance, upgrade feasibility, local market conditions, and even geographical or physical variables — not just broad climate targets or capex summaries. Currently, Norwegian banks use our software to dive deeper into their property portfolios looking for hidden value and risks that they otherwise can’t see.

Netto bridges the vital gap between financing and building management, empowering banks to make smarter lending decisions and helping their customers make the changes their properties need in order to thrive. Our platform helps reduce risk, unlock better financing options for building owners, and accelerate the shift toward low-carbon, future-proof commercial property portfolios. The result is more resilient, profitable portfolios that are also aligned with net zero targets.

We believe financial institutions can be key drivers of the energy transition. By embracing smarter transition intelligence, as RMI advocates, and leveraging Netto’s insights, banks can confidently transform high-emission buildings into low-risk, future-proof investments benefiting their customers, their balance sheets, and the planet alike.

As of August 2025, more than 9 million m² of commercial property is already on track for net zero using Netto.

The big questions surrounding England's commercial property sector

borge.astrup@netto.eco (Børge Astrup) — Thu, 31 Jul 2025 07:38:45 GMT

New research from the British Property Federation paints a stark picture for the UK’s commercial real estate sector. According to their analysis, over 80 percent of commercial buildings across England could be deemed unlettable by 2030 if they fail to meet new energy efficiency standards.

The government has proposed that all commercial properties must reach a minimum Energy Performance Certificate (EPC) rating of B within the next five years. But progress has been slow. In major cities like London, Birmingham, Manchester, Leeds and Bristol, a staggering 83 percent of buildings are still rated EPC C or lower. The interim 2027 target of achieving at least a C rating also appears out of reach, with more than half of all buildings still sitting at D or below.

Property owners and investors say they’re stuck in a holding pattern. The original proposals were outlined in a 2021 government consultation, but no official response has followed. That lack of clarity has only made a tough situation harder, especially in today’s challenging financing environment.

Although effective once done, retrofitting older stock comes with steep costs. Inflation has driven up prices for materials and labour, and many landlords report that banks are hesitant to finance upgrades without a more predictable regulatory roadmap and understanding of the risks involved. In cities like Bristol and Birmingham, only 15 percent of buildings currently meet the EPC C level. London fares slightly better at the top end, but still, only 19 percent of its buildings meet the EPC B standard.

While the Department for Energy Security and Net Zero has said that exemptions will remain in place where upgrades aren’t cost-effective, property leaders are pushing for more than just reassurance. They increasingly want clear thresholds, firm timeframes and practical financial support if the market is going to avoid a wave of stranded assets.

But it’s not just building owners facing risk. Banks will be on the hook too. As regulations tighten, lenders with exposure to low-rated properties will see asset values fall and subsequently their portfolios weaken. Without action, the financial risk spreads well beyond the buildings themselves.

Netto is working with UK banks to help them identify, assess and finance energy upgrades across commercial property portfolios. We give lenders the clarity they need so they can help property owners unlock the funding they need to move forward.

Helping banks turn risky buildings into profitable loans

borge.astrup@netto.eco (Børge Astrup) — Fri, 04 Jul 2025 09:57:59 GMT

More than 90% of commercial buildings don’t meet upcoming energy standards, meaning trillions in property value and capital exposure are at risk. At the same time, the world’s banks hold the key to financing the net-zero transition. But also a responsibility to their shareholders to sustain growth and profit for their bank.

That’s where Netto comes in.

We help banks transform high-risk, non-compliant buildings into profitable investments with minimal risk, growing their lending and ensuring they stay ahead of evolving regulations.

Built to deliver value where banks need it most

Property management is difficult, whether you have one, one hundred, or one hundred thousand buildings. And we're not here to add to an already massive workload for banks. That's why we designed Netto to slot into how banks already work, and to solve the problems they’re facing right now without adding new ones.

For example:

Unclear risk profile across and within portfolios
Stagnant lending pipelines
Pressure to meet ESG and compliance targets
Lack of reliable building data

By digging deeper into a bank's real estate portfolio, we offer real value, analysing performance and gathering data right down to the property level. We use real energy data when available to help banks understand which buildings are most at risk and how to reduce that risk through targeted upgrades or retrofits, smarter capital allocation, and more strategic lending.

Our platform is built to deliver positive outcomes across multiple teams within a bank. Real estate and lending teams gain clarity on property-level risk and unlock new lending opportunities. ESG and compliance teams benefit from streamlined data and audit-ready reporting. Risk teams can assess transition and physical risks with precision, while relationship managers are equipped to guide clients toward lower emissions, lower costs, and better loan terms.

So for us, it’s not only about emissions (although it's crucial to reduce them). It’s creating value for our customers and their customers.

The user experience

With Netto, banks and building owners can work together on one platform. Sharing data, setting goals, planning retrofits, and tracking results over time. Because out of sight means out of mind, we know this interface and improved dialogue yield better outcomes for both parties.

Here's how it works in practice:

Onboarding with Netto is simple and takes under five minutes. The bank sends an invite through the platform, the customer enters their org number, building details, and connects their energy meter. From there, both parties get instant access to key insights like property-level risk scores, PCAF data quality scores, CRREM trajectories, and tailored investment advice. Banks can then access full oversight of each customer, as well as issue green loan terms directly in the platform with a preset risk preference, set performance goals, and manage unlimited buildings and portfolios seamlessly.

The result:

Banks get a clearer view of risk, more compliant portfolios, and a larger, more profitable lending book.
Building owners get practical transition plans, investment guidance, and access to previously unavailable financing.

We also support the full lifecycle of retrofit financing, from identifying the opportunity to managing the risk, to making the connections to ensure the upgrades happen through our energy advisor module.

And because every part of our system is built around data quality and a growing database of properties around the world, both banks and their customers can always log in to get an up-to-date picture of their risk profile, energy performance, and financial conditions.

Unlocking capital and reducing risk

Much of the capital in commercial real estate is locked up due to poor data and unclear or high-risk profiles. Banks are required to allocate more capital against these loans, making them more expensive to offer or less likely to be made at all.

Netto’s risk scoring helps reduce that exposure. With our growing database of buildings, we're able to produce accurate insights into transition risk, physical climate risk, and nature risk.

Why banks?

Because they’re the point of greatest leverage.

Because banks have a hand in financing the majority of buildings, they can influence the entire built environment through the loans they offer. On the other hand, they also have the most to gain should those buildings be run more efficiently and with reduced exposure. By giving banks the tools to assess, improve, and finance buildings more effectively, we can scale capital and impact across entire markets, helping lenders grow revenue and reduce downside risk.

And by solving these key challenges, we offer banks a way to lead and not follow the green finance transition.

A global opportunity

The commercial lending market is worth over $140 trillion globally. Netto is already working with more than half of Norway’s banks (a ~$560B market), and we’re expanding quickly into the UK, with its ~$5.6T commercial real estate market and a clear appetite for action.

As more regions introduce stricter building performance regulations and reporting requirements, the demand for retrofit financing and data-driven tools will grow.

The big idea

We built Netto because we saw two truths:

The built environment is responsible for around 40% of global emissions.
Banks are the best-positioned actors to drive change and make money doing it.

From day one, we’ve focused on reducing emissions by helping financial institutions better understand, manage, and support their property portfolios. We’re here to help them finance the future and grow their business doing it.

And we’re just getting started.

Why you should follow Norges Bank’s lead on managing risk in commercial real estate portfolios

erlend.bolle@netto.eco (Erlend Bolle) — Wed, 21 May 2025 11:24:54 GMT

Norges Bank, Norway’s central bank and manager of Norway's sovereign wealth fund, is sounding the alarm.

In their latest Financial Stability report (2025 H1), they highlight how banks are heavily exposed to climate and transition risk through commercial real estate (CRE), and how outdated, inefficient buildings could become a major financial liability.

This new report from one of the world's largest managers of capital is a very clear signal that banks need to pay attention to: Take. Transition Risk. Seriously.

It's not just Norges...

In a recent BankShift interview, Bengt Olsen, another industry leader and Chief Financial Officer at Sparebank 1 Nord-Norge, underscored these potential risks by stating, “Commercial real estate is typically one of the largest segments in a bank’s balance sheet, so it will hit banks hard if things go wrong there.” His remarks reinforce the urgency for banks to act before problems escalate.

Property is a climate and credit risk

This risk is so high because buildings account for nearly 40% of global emissions, and in Europe, the aging building stock is facing tightening climate regulations. From EU Taxonomy compliance to SFDR and CSRD disclosures, banks must now account for the carbon intensity of their property-backed loans.

As it's already been pointed out, CRE represents nearly half of banks’ lending. As the market shifts and regulations tighten, exposure to inefficient assets can quickly turn into stranded assets.

The smart move? Transition now

Norges Bank’s proactive stance shows that it's no longer enough to monitor CRE risk. It has to be actively managed and mitigated. Leading banks should integrate climate and transition risk into credit decisions and begin to scale green and sustainable lending to future-proof their portfolios.

How to fast-track profitable green lending

Netto is a cloud-based platform that helps banks transform high-risk buildings into profitable, low-carbon assets. By embedding real-time energy and climate data into credit workflows, Netto enables banks to:

Identify risk hotspots:

Assess upgrade potential:
Originate green loans with confidence.
Ensure compliance.

Whether you're a relationship manager, ESG lead, or risk officer, Netto gives you the tools to act on emissions and unlock sustainable revenue.

Want to see how Netto can help your bank lead the transition?

Book a free 15-minute demo here.