This as businesses move to reduce their carbon footprint
NAB has reported a 59% surge in its business finance for green equipment in the three months to June compared to the previous quarter, with many businesses taking advantage of government incentives to upgrade equipment while also reducing their carbon footprint.
The same data showed a massive 226% growth in NAB’s finance for energy-efficient agriculture equipment, while solar upgrades and electric vehicles spiked 129% and 32%, respectively.
Julie Rynski (pictured above left), NAB executive for business metro, said there was a growing appetite from business customers to better understand how they can cut their emissions, with NAB research showing that around one in five SMEs strongly intend to make an investment to improve the sustainability of their business over the next two years.
“Business owners know the value of making smart investments, and in today’s economic environment they’re being extra careful about where they put their money, yet many are choosing to prioritise their climate transition,” Rynski said.
“Schemes such as the instant assist write off and proposed small business energy incentive may be helping eligible businesses squeeze the most out of each dollar, driving investment into things like energy-efficient farming machinery and electric heating and cooling systems.”
NAB figures showed that businesses in South Australia were leading growth, with a 380% increase in financing green equipment. This was followed by NSW (89%), Tasmania (58%), and West Australia (33%).
“As electric vehicles become more affordable in Australia, many business owners are choosing to invest in sustainable transport by electrifying their fleet,” Rynski said. “In January we were funding electric vehicles from seven manufacturers, today it’s 12. Tesla still dominates, although we’re seeing a growth in popularity of other brands such as BYD and Volvo.”
Scott Gillespie (pictured above right), CEO and founder of car leasing company CarBon, said NAB’s business finance for green equipment has helped his business reduce its carbon emissions as well as supported its move towards a more sustainable commercial transport model.
“We’ve used the finance option to fund a range of commercial electric vehicles to be used as long-term EV subscriptions for customers from local councils, the construction industry, and last mile delivery,” Gillespie said.
“The transport sector creates a significant percentage of Australia’s emissions, and without intervention it’s projected to be the country’s largest source of emissions by 2030. We will continue to transition our existing fleets of traditional diesel and petrol vehicles over to electric.”
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