The world is facing a climate crisis. To meet its obligations under the Climate Change Act 2008, the UK government has set a target of reducing carbon emissions by 80% from 1990 levels by 2050.
NatWest, through its sustainable energy services, is helping small businesses play their part to become more environmentally friendly while reducing their energy costs. Richard Saint, Head of Energy, Infrastructure and Industrials, NatWest, says: “Energy usage and its associated costs are relevant to all our customers, whether they’re personal customers heating or powering their homes, SMEs – as a sole trader or a small office – or our larger corporate customers, they will all have a requirement to use energy in some shape or form.”
Chair of the bank’s sustainable energy forum, Saint helps support customers in trying to increase their energy efficiency and reduce their carbon footprint. “I am responsible for energy across the group and bringing in new ideas and innovation to ensure we can meet our customers’ evolving needs,” he says.
Potential energy
“As a bank, we have over 25 years of expertise in financing sustainable energy, since providing finance for one of the early onshore wind farms in the UK,” Saint says. “We have brought this expertise together in various teams across the bank to come up with innovative solutions for our customers and keep abreast of this fast-moving sector.”
NatWest’s team of sustainability experts includes more than 40 individuals from across the business, who come together to find ways to help customers become, what it calls, “energy intelligent”. The group consults leading industry authorities, finances new kinds of sustainable energy technologies and helps raise awareness of new financial products such as green bonds, to support investment in renewables, energy efficiency projects and low-carbon vehicles.
In 2015, the bank financed in excess of £1bn in sustainable energy projects. That rose to more than £1.1bn in 2016, and is on target to surpass the 2015-2017 goal of £3bn investment by the end of this year.
When the wind blows
One company that has benefited from such funding is Cambridge-based renewable energy manufacturer and developer the Abbey Group. It was provided with £16m towards a group of wind farms, which will provide enough electricity to power 7,000 homes.
NatWest introduced the group to their specialist asset finance partner, Lombard, which has been extremely proactive in progressing the deal. Their expertise in green energy is unsurpassed, says Nick Sutton, managing director of the Abbey Group. “We look forward to working with them again as our renewables sector continues to grow.”
While some people don’t want wind turbines in their backyards, for many farmers, they can be a valuable asset. According to the National Farmers Union, over a third of farmers now use renewable energy sources.
Lower-carbon alternatives
But NatWest is not just funding renewable projects. “We help our customers transition their vehicle fleets to lower-carbon alternatives, through fleet reviews and financing,” says Saint. “The beauty of sustainable energy is its universality – whether you’re a small business or a large multinational you will have some form of energy use. Reducing your costs can both boost your profitability and make you more competitive, in addition to providing you with more energy security.”
Battling legislation
As the UK strives to reach its targets of reducing carbon emissions by 37% by 2020, 51% by 2025 and 57% by 2030, new legislation is being introduced. While some companies will be affected by this change, others may just choose to follow suit because it is financially beneficial to do so. In any case, NatWest and its team of sustainability experts is on board to assist its customers in meeting minimum energy efficiency standards – helping businesses contribute to the broader goal of lowering emissions in line with the targets set by the government.
“We support our customers in complying with the raft of energy related legislation and help them find opportunities among the changes,” says Saint. “For instance, as traditional combustion engine vehicles are phased out – either as a result of legislation or manufacturing decisions – we can help customers, large or small, consider alternatives and help them achieve their ambitions.”
For over 25 years NatWest has supported the journey towards a greener economy by offering businesses guidance and support to help reduce their carbon footprint. To find out more click here
