Source: MIL-OSI Submissions
Source: Special PR for Kiwibank
- Kiwibank will make sustainable business loans, with preferential interest rates, available to business banking customers from 26 September 2022
- It has also become the first bank to enable qualifying business customers to easily calculate their carbon footprint through its partnership with sustainability fintech Cogo
- Kiwibank is committed to supporting Kiwi to thrive and will continue to ensure it balances performance and purpose in line with its Responsible Business Banking policy ( https://www.kiwibank.co.nz/about-us/who-we-are/our-purpose/responsible-business-banking-policy/ )
Wellington, New Zealand: Kiwibank will offer preferential interest rates on sustainable loans for all eligible business banking customers, enabling more Kiwi businesses to implement sustainability initiatives that will assist in reducing their carbon footprint.
Regardless of the industry, be it retail, information technology, or fast-moving consumer goods, the loans give Kiwibank business customers access to preferential pricing for approved sustainability purposes.
In addition, to equip businesses with the tools they need to measure the success of their sustainability initiatives, the B Corp certified bank has partnered with sustainability fintech Cogo to enable qualifying business customers to easily calculate their emission footprint.
Kiwibank Chief Executive Steve Jurkovich says: “New Zealand is a country of small and medium enterprises that not only make a critical contribution to our economy and our communities but are essential for the future prosperity of our nation.
“Sustainable finance shouldn’t be reserved for big business alone. We will be the first Kiwi bank to offer an off-the-shelf sustainable loan option for all businesses no matter size or industry type. This is about providing the support small and medium enterprises need to thrive in the global economy of the future. We will help them fund and realise their sustainability credentials to earn investor and customer trust.
“As a certified B Corporation, we will understand enduring commercial success is linked to more than just financial assets. Sustainability is a growing concern for all of us and a major component of the resilience and long-term performance of organisations. This is business banking for better,” Jurkovich says.
To ensure it continues to protect the best interest of New Zealanders and be the bank that helps make Kiwi better off, Kiwibank will continue to withhold banking services from entities outlined in its Responsible Business Banking policy, including sectors such as fossil fuels, casinos, military grade weapons and tobacco.
Kiwibank Head of Sustainable Finance Tom Williams says: “Around half of SMEs are already taking active steps to improve sustainability, but when it comes to measuring their emissions, many don’t know where to start or are too busy running their businesses to take further action.
“To achieve our nation’s goal to reduce emissions every Kiwi business needs to take action. Kiwibank will be encouraging businesses to make better decisions by mainstreaming access to sustainable finance and giving those businesses the ability to easily track their carbon footprint.”
Cogo utilises categorised transactional data – such as spend on electricity and fuel – and assigns a carbon footprint to each transaction. At no cost, and in just a few clicks qualifying Kiwibank business banking customers will be able to measure their carbon footprint based on spending. The web-based app will also provide suggestions and guidance on how to reduce business emissions and improve efficiency.
The New Zealand-owned, B Corp certified bank is the first bank in Aotearoa to launch a digital carbon management tool for its business banking customers.
Cogo APAC CEO Julie Lindenberg says: “As a country, New Zealand has always been vocal about reducing greenhouse gas emissions – but achieving this will take leadership. Our collective action can have a dramatic impact in terms of addressing climate change.
“Kiwibank is leading the banking industry in New Zealand by recognising the key role banks have to play in enabling individuals and businesses to spearhead this change. The time to reduce our carbon footprint is now. We cannot wait. We’re proud to be the go-to solution for change for the world’s largest banks, and we’re excited about kicking off this change in Aotearoa, in partnership with Kiwibank.”
Cogo will be available to some Kiwibank business customers as soon as September 2022. Customers can register their interest by emailing:
sustainablefinance@kiwibank.co.nz
Kiwibank Sustainable Business Loans will be available to business banking customers from 26 September 2022. Sustainable uses of the loans include:
- NZGBC Green Star five or above & Homestar eight or above buildings
- Energy efficiency improvements, renewable energy generation/storage, equipment electrification, decarbonising process heat, and low emission charging infrastructure
- Transportation, electric or hydrogen light vehicles, low emission heavy vehicles Circular economy including sustainable packaging, waste infrastructure and carbon capture and storage
- Purpose-led and B Corp certified organisations
Kiwibank is a purpose-led organisation and in 2023 has committed to delivering $100m in sustainable finance. It is also committed to providing $2 billion in financial support to SMEs towards their sustainability journey by 2030. Recently it achieved B-Corp certification in 2021 and was recognised as winners of the 2022 INFINZ ESG Award. Its Responsible Business Banking Policy puts the interests and values of Kiwi ahead of short-term business considerations, backed by the belief that this will have a positive impact on New Zealand, its people and the environment over years to come.
