Kiwibank will start offering preferential interest rates on sustainable loans for eligible business banking customers – regardless of their industry – to help New Zealand businesses implement sustainable initiatives.
The bank has partnered with the sustainable software company Cogo to help qualifying business customers calculate their emission footprint when the web-based app becomes available in September.
Cogo analyses and categorises transactional data, such as spending on electricity and fuel, before assigning a carbon footprint to each transaction – at no cost to the business.
Kiwibank chief executive Steve Jurkovich said small and medium enterprises made a “critical contribution” to NZ’s economy and communities and were essential to the country’s future prosperity.
“Sustainable finance shouldn’t be reserved for big business alone,” he said. “This is about providing the support small and medium enterprises need to thrive in the global economy of the future.”
Jurkovich said Kiwibank would be the first NZ bank to offer an “off-the-shelf” sustainable loan option for all businesses – no matter the size or industry type.
Cogo’s Asia-Pacific chief executive Julie Lindenberg said Kiwibank recognised the key role banks had to play in enabling individuals and businesses to use more sustainable measures and Kiwibank was leading the way for NZ’s banking industry.
“The time to reduce our carbon footprint is now,” Lindenberg said. “We cannot wait.”
In its media statement, Kiwibank said it will continue to refuse to offer banking services from entities outlined in its Responsible Business Banking policy, which include sectors such as fossil fuels, casinos, military-grade weapons and tobacco.
