CommBank offering is aimed at mid to large commercial businesses
Australia’s biggest bank has released a new green loan aimed at commercial businesses which want to fund renewable energy projects, energy efficient building upgrades, and pollution reduction initiatives.
Commonwealth Bank of Australia launched the Business Green Loan at CommBank’s “Momentum” sustainability conference on Tuesday.
CBA executive general manager business lending Grant Cairns (pictured above) said the loan was targeted at commercial businesses seeking competitive funding for sustainability practices.
“The solution is aimed at our business customers with a relationship manager,” Cairns said. “These are typically mid- to larger-sized corporates. The Business Green Loan provides support to customers across a broad range of industries that are seeking to enhance the sustainability of their business. Manufacturing, transport, storage are some sector examples.”
The loan will support businesses to finance assets and initiatives that can reduce emissions, build climate change resilience and protect natural resources. This includes renewable energy projects, energy-efficient building upgrades, and pollution reduction measures.
Eligible assets* and projects for the Business Green Loan may include:
- renewable energy such as solar, wind, hydropower and batteries
- energy efficient assets such as highly efficient motors, lighting, heating and cooling
- energy efficient building upgrade
- recycling, refurbishment, composting projects
- water efficiency and pollution prevention initiatives
Demand for green loans on the rise
Speaking at the Momentum conference, which was reported in a media release on the bank’s website, Cairns said CommBank was continuously assessing the needs of its customers and determining how “we can better provide solutions to meet those needs”.
“We identified an opportunity to expand our green offering and better meet those needs and so launched the Business Green Loan in response,” he said.
“There has been a big shift in the types of conversations we are having with our business customers, from small businesses to our largest corporate clients – customers recognise the opportunity to implement sustainable practices that not only advance their environmental goals but also lower operating costs.”
New loan adds to CBA’s green lending program
Cairns said that as Australia’s leading business bank, CBA had an important role to play in financing the nation’s transition and it was committed to supporting businesses to finance initiatives and assets “that will help drive a more sustainable future”.
CBA has a track record of delivering market-first sustainable finance solutions and tools to support customers, he said.
“We were the first Australian bank to offer an Agri Green Loan for farmers and more recently, we launched our Green Buildings Tool to help commercial property owners identify and implement investments that uplift the sustainability of their building operations.”
In April 2023, CBA also rolled out its Green Vehicle and Equipment Finance offering, which provides discounted interest rates on electric or hydrogen-powered cars, trucks, vans, or buses and other qualifying assets such as electric and hydrogen-powered machinery and equipment.
Cairns said CBA was focused on providing an end-to-end offering to help customers progress their net-zero transition.
For example, the bank’s commercial property customers can identify energy efficiency upgrades through CBA’s Green Buildings Tool, and then finance these upgrades through the Business Green Loan.
“This allows businesses to identify, scope and prioritise upgrades that can have a positive impact on both energy efficiency and costs, and to obtain finance that directly supports implementation,” Cairns said.
He said CBA could tailor terms to suit the individual needs of customers depending on their projects, assets and funding needs.
“The Business Green Loan is designed to complement existing CBA business banking solutions such as the Green Vehicle and Equipment Finance offering, Sustainable Finance offering and the Agri Green Loan.”
CommBank’s 2030 Sustainability Funding Target
Cairns said CBA’s commitment to supporting customers with their sustainability transition was reflected in the bank’s 2030 Sustainability Funding Target (SFT).
He said through the SFT, CommBank planned to deliver $70 billion in cumulative funding across sustainable industries and asset types including renewables, energy efficiency, low carbon transport, commercial property, land and agriculture, waste management and sustainability-linked lending.
Momentum 2024 is CBA’s third sustainability conference, and was held at the International Convention Centre Sydney.
Among the main speakers were CommBank CEO Matt Comyn, Team Global Express CEO Christine Holgate and engineer and entrepreneur Saul Griffith.
More information on the Business Green Loan, including rates, fees and eligibility criteria is available from commbank.com.au/business/loans-and-finance/business-green-loan
* Eligible assets and projects are assessed by the CBA of its Business Green Loan eligibility criteria and normal credit approval processes.
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