NatWest and the Federation of Small Businesses (FSB) have teamed up to analyse and provide support to UK businesses struggling with the cost of living crisis.
The cost of living crisis currently unfolding in the UK has disrupted the nation’s sustainability journey. Recent energy price hikes have also produced new challenges for the UK’s small business community and caused concern about their ability to pursue long-term sustainability and Net Zero goals.
SMEs may be forced to prioritise immediate cashflow over sustainable investments in their own energy infrastructures due to the energy crisis.
NatWest and FSB’s research indicated that over half of UK small businesses were interested in investing in green energy in the years ahead, but there is an increasingly pertinent concern that the energy crisis will put major sustainability investments at a halt.
NatWest has announced that they will lower the requirement for Green Loan applications to £25,000 starting from October to help more SMEs qualify to invest in sustainable energy solutions, which include solar panels, heat pumps, and better insulation. The UK bank will also remove the minimum charge for Business Current Accounts and not increase published tariffs and fees for the next year.
The UK Government also recognises the challenges being face by SMEs, and recently announced that they will extend support to SMEs in need and implement price caps.
Martin McTague, chair of the Federation of Small Businesses, explained: “We are enormously relieved that the Government has recognised the urgency of the energy pricing problem and we welcome the most recent support measures introduced. However, there is still a great degree of uncertainty in the market with many of our network of small businesses facing a cliff edge beyond the next six months.”
Commenting on the significance of supporting businesses during the crisis, Andrew Harrison, head of business banking at NatWest stated:: “We are at a critical moment in our response to the climate crisis. The current economic environment is such that many SMEs who are ready and willing to invest in green initiatives still feel unable to do so as rising energy costs shift their focus to the short-term.
“The long-term impact is that our nation’s small businesses are left behind the curve on green innovation, less efficient than competitors, more exposed to future supply-side shocks and unable to make their crucial contribution to UK climate targets. We must support long term investment into new, clean technology that will lead to lower energy prices for longer and a much more resilient UK energy infrastructure.”
Earlier this year, NatWest designed a carbon planner available to all businesses in order to track their carbon emissions and reduce their footprint.
Finextra recently announced its fifth Sustainable Finance Live conference and hackathon, scheduled to take place on 29 November. For more information and to register for this event, please visit the event page here.