We are very excited announce our partnership with BNZ on a new sustainability-linked loan Programme. We are using our experience and knowledge to translate environmental aspirations into measurable KPIs that our auditors can verify. The first pilot loan is with Southern Pastures, owner of Lewis Road Creamery, who have set on-farm targets related to carbon, nitrogen loss and biodiversity.
BNZ’s sustainability-linked loan Programme is perfectly aligned with our growing focus and expertise in the environmental and sustainability arena.
We’re really keen to support our customers in this space and are thinking outside the box to deliver high value through new assurance methods and skills. As an example, we’re using drones to check riparian planting and our auditors are upskilling in identification of alternative pasture species. We will also be expanding auditor guidance to include a range of other metrics (beyond only environmental) that BNZ borrowers will be able to set targets for.
Sustainability-linked loans bring a financial incentive to farmers who are willing to make on-farm environmental commitments. It’s a win-win situation: farmers making improvements in this area are better prepared to deal with any future regulatory requirements, better equipped to respond to the challenges of climate change, and seen as lower-risk borrowers.
We’re looking forward to supporting farmers as they continue lead change in this area, so that everyone benefits – not just in the immediate future, but for generations to come.
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