Firms Boosting Climate Resilience with Green Equipment

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by KnowESG
KnowESG_Firms Boosting Climate Resilience with Green Equipment
Image courtesy of NAB

NAB's business finance for environmentally friendly equipment has witnessed an impressive 59% surge in the last three months.

This notable increase can be attributed to businesses capitalising on government incentives to upgrade their equipment while simultaneously reducing their carbon footprint.

The data also reveals a substantial demand for energy-efficient agriculture equipment, with a remarkable growth rate of 226%. Following closely are solar upgrades and electric vehicles, which experienced impressive rises of 129% and 32%, respectively.

NAB Executive for Business Metro, Julie Rynski, emphasises the bank's commitment to assisting its customers in their transition towards a greener and more sustainable future.

"We've noticed a growing interest among our business customers in understanding how they can lower their emissions," said Ms. Rynski. "Recent NAB research shows that about one in five SMEs has a strong intention to invest in sustainability measures for their businesses in the next two years. Incentives like the instant asset write-off and proposed small business energy incentive are driving eligible businesses to invest in energy-efficient farming machinery and electric heating and cooling systems."

The growth in financing green equipment is particularly evident in several leading states, including South Australia, which experienced a substantial increase of 380%, followed by New South Wales at 89%, Tasmania at 58%, and West Australia at 33%.

"As electric vehicles become more affordable in Australia, many business owners are opting for sustainable transport solutions by electrifying their fleets," Ms. Rynski noted. "In January, we financed electric vehicles from seven manufacturers, and today, that number has grown to 12. Tesla continues to dominate, but we're also witnessing a surge in popularity for other brands like BYD and Volvo."

Scott Gillespie, CEO and Founder of car leasing company CarBon, highlights how NAB's business finance for green equipment has played a crucial role in reducing his company's carbon emissions while supporting a more sustainable commercial transport model. "We've used the finance option to fund various commercial electric vehicles for long-term EV subscriptions, benefiting local councils, the construction industry, and last-mile delivery," Mr. Gillespie said.

He also emphasised the importance of such initiatives as the transport sector currently accounts for a significant portion of Australia's emissions and, without intervention, is projected to become the country's largest source of emissions by 2030. Mr. Gillespie expressed his commitment to transitioning CarBon's existing fleets of traditional diesel and petrol vehicles to electric options, contributing to a cleaner and greener future.

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Source: NAB

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