Favourable loan terms
“Retrofitting” buildings to make them more energy efficient is a huge part of the journey to net zero. Indeed, Bristol’s new climate and ecological action plan says 250,000 homes and 8,000 other properties need to be retrofitted in the next eight years to meet its carbon neutral ambitions.
If retrofitting is on the agenda, then the business could qualify for a green loan i.e. a financial product that’s specifically designed to fund green projects (as defined in the Loan Market Association’s (LMA’s) Green Loan Principles). The benefits for businesses include accessing more favourable terms, which lenders are using to incentivise borrowers to spend on sustainability improvements.
Not only is a more energy efficient building better for the environment, the business also stands to benefit from reduced energy bills - and it can even help with recruitment and retention!