New Zealand’s Kiwibank is encouraging businesses to implement sustainable initiatives by providing preferential interest rates on loans that support reducing their carbon footprint.

Regardless of whether a business is in retail, information technology or fast-moving consumer goods, Kiwibank will give their business customers access to preferential pricing for sustainability purposes.

“Sustainable finances 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,” says Chief Executive Steve Jurkovich.

“We will help them fund and realise their sustainability credentials to earn investor and customer trust.”

Jurkovich adds that the loans align with their B Corp certification, and as sustainability becomes a growing concern, it has become important for Kiwibank to look at their business banking model.

“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,” says Head of Sustainable Finance Tom Williams.

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“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.”

Kiwibank, as part of their sustainability business model, withholds their services from entities involved in fossil fuels, casinos, military grade weapons and tobacco.

Chloe Can Dyke, Co-founder of Chia Sisters, the sustainable company that creates nutritious drinks and B Corp certified is working with Kiwibank as they ensure every business in their chain is sustainable.

“The reason we are partnering with Kiwibank is because they have shown their leadership in the sustainable finance space. We are trying to align our values across every aspect of our business and all the partnerships that we have. So banking is one of those partnerships and Kiwibank aligns closely with our values,” she says.

“Kiwibank offers sustainable finance so they recognise our ethics and work in the sustainability space. They recognise our efforts and feel that has value.”

Alongside this, Kiwibank will be the first bank to provide this whilst also giving businesses tools to help calculate their carbon footprint in a partnership with sustainable fintech Cogo. 

They will become the first bank in the country to launch a digital carbon management tool for their business banking customers.

With Cogo, business customers will be able to measure their carbon footprint through each transaction while also providing suggestions and guidance on ways to reduce business emissions.

From September 26, 2022, the Kiwibank Sustainable Business Loans will be available to business banking customers.

The loan can cover sustainable uses on energy efficiency improvements, low emission transportation, purpose-led and B Corp certified organisations and more.