ASB launches new loan to help NZ farmers switch to solar power
As electricity prices soar, farmers appear to be looking for alternative energy sources.
SLLs require the borrower to commit to set key environmental, social, and/or governance (ESG) targets, with borrowing costs adjusted based on their performance against these targets.
The company has committed to three key focus areas: reductions in both waste and carbon emissions, and improved wellness metrics for its workforce.
Trevelyan’s managing director, James Trevelyan, says the focus on waste, carbon emissions and wellness feeds back to the company’s sustainability framework of three key pillars that define its principles of working smart, treading lightly, and treating their people with respect.
“We are fully aware that sustainable practices are a long-term investment and will drive ethical and financial value for our business, our people, and the planet. We are delighted to partner with ASB with this shared vision,” says Trevelyan.
He says that one of the company’s goals is to reduce waste sent to the landfill by 10% each year, based on a 2021 baseline, with an additional goal of sending zero waste to landfill by 2030.
ASB head of sustainable finance, James Paterson says it is encouraging to see businesses increasingly focused on sustainability and doing business more thoughtfully.
“The work from Trevelyan’s with this new SLL is a credit to them and their desire to grow a better future and tread lightly as they do so. We are proud to help bring this to life.”
He says ASB is progressing well on its mission to support industry transition with a cumulative sustainable lending target of $6.5 billion by FY30 for green, social, and sustainability-linked lending across the rural, property, corporate and business sectors with around $810 million committed to date.
The verification of the SLL, defining the key performance indicators and the development of the documentation was supported by Deloitte and Russell McVeagh.
“Aligning funding arrangements with its sustainability goals demonstrates genuine commitment to bringing about positive change, and our team is proud to have supported in this significant step towards realising Trevelyan’s ESG targets and ambitions,” says Russell McVeagh partner John Powell.
ASB is Toitu Carbon Zero certified and recently became a signatory to the UN Principles for Responsible Banking - the world’s foremost sustainable banking framework developed through a partnership between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).
