The loans will help farms and businesses become more sustainable
Westpac NZ has introduced two new sustainable loans to help farming and corporate business customers build resilience to climate change impacts, reduce greenhouse gas emissions, and deliver positive outcomes for communities.
“We know that businesses and farms can play a key role in driving sustainability,” said Catherine McGrath (pictured above), Westpac NZ CEO. “Their efforts, with our support, will help farms and businesses become even more sustainable, and serve to protect New Zealand’s highly valued environment.”
Sustainable Farm Loan
Westpac’s new sustainable farm loan is New Zealand’s first-ever whole-of-farm sustainable loan, and importantly covers all term debt associated with the farm.
“Our loan focuses on supporting our farming customers to assess and reduce on-farm vulnerability and risks that climate change and extreme weather events may have on the land, farming systems, and infrastructure,” McGrath said.
“We’re also keen to encourage increased focus on farm management, waterway biodiversity, and nutrient improvements on the farm, and understanding and managing agricultural emissions.”
The bank has teamed up with AsureQuality to ensure the loan offering is robust and equivalent to all applicable aspects of the industry-agreed Sustainable Agriculture Finance Initiative guidance.
“We’ve also designed our Westpac Sustainable Farm Standard to complement farm assurance programmes that many of our customers are already using on-farm, to reduce duplication and reporting commitments for our customers,” McGrath said.
“Our standard defines requirements that farmers need to meet, with a view to improving sustainability outcomes in areas like water management, application of fertiliser, waste management, climate change mitigation, adapting to climate change and better outcomes for biodiversity and soil health.”
Farmers have two years to meet the Westpac Sustainable Farm Standard, which offers them a 0.2% discount off the existing loan interest margin across all term debt associated with the farm.
Sustainable Business Loan
Westpac’s new sustainable business loan is now on offer to support corporate and agribusiness customers who wish to invest in sustainability initiatives, whether to improve the environment or achieve positive social outcomes, or both.
“This sustainable business loan will help our corporate and agribusiness customers invest in projects that improve the environment, help adapt to climate change, or deliver positive social outcomes for communities or particular groups,” McGrath said.
“It complements the Sustainable Farm Loan but has a more targeted focus on specific assets and projects.”
Assets and activities that may be eligible for the loan include green buildings, solar panels, electric vehicles, waste reduction, biodiversity conservation, climate change adaptation, affordable housing, and financial education programmes.
Like the Sustainable Farm Loan, the Sustainable Business Loan offers a 0.20% discount off loan interest margin.
“These two new loans show Westpac is committed to working together with our customers for greater outcomes, and supporting Aotearoa to have a more sustainable, resilient, inclusive and successful future,” McGrath said.
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