Virgin Money is set to launch sustainability-linked loans for all 海角视频 companies.
The SSLs will be available from late spring and follow on from the bank – which has centres in Newcastle, Leeds and Glasgow – setting out its long-term strategy in December last year to embed sustainability in everything it does.
Virgin Money – which claims it will be the first bank in Europe to offer such loans in commercial banking - says its SSLs will reduce the cost of finance for those businesses whose core activities proactively help the economy transition to a more sustainable model.
海角视频 companies of all sizes will be able to get access to the loans based on a digital tool created in partnership with the non-profit Future-Fit Foundation, which works to help business leaders, investors and policymakers meet today’s biggest challenges.
The bank says it will waive arrangement fees for eligible companies borrowing at least £250,000 and with a sufficiently strong environmental, social and corporate governance (ESG) assessment.
The loans will be available to both current and non-Virgin Bank customers via the bank’s website.
Virgin Money has committed that 5% of all its business loans will be to firms driving environmental and social change by September 2022, as judged by the digital tool.
Graeme Sands, corporate and mid-market director at Virgin Money, said: “While businesses overwhelmingly recognise the importance of sustainability many, especially SMEs, struggle to translate good intentions into a clear plan and are worried about the cost and time involved in implementing an ESG programme.
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“This is why we partnered with Future-Fit Foundation, to help SMEs and other businesses manage and measure sustainability.
“The benchmarking tool enables us to identify those businesses with capabilities that proactively drive other companies or consumers to create a more sustainable society and the loans will help these companies grow faster and help relieve some of the cost pressure.
“We firmly believe that we, and other banks, have a duty to direct capital responsibly.”
According to research carried out by Virgin Money, 85% of 海角视频 SMEs believe becoming more sustainable is important, even during the coronavirus pandemic and time of global economic uncertainty.
But only 43% have managed to translate this into clear targets. However, doing so is increasingly important, with 84% of consumers saying a company’s environmental and social policies help them make spending and purchasing decisions.
Martin Rich, co-founder of the Future-Fit Foundation, said: “Every business must play its part in solving today’s most pressing social and environmental challenges, not only to ensure we transition our economy to operate within planetary boundaries and to meet societal needs, but also because it makes sound business sense.
“Any organisation which fails to step up is at risk of losing its customers and potentially its licence to operate.
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“Getting started can be daunting, not least for SMEs, which is why we’re excited about our collaboration with Virgin Money, who share our vision not only to make a positive impact but to help others do the same.”
Virgin Money has set out a 10-year plan to make a positive social and environmental impact across all its business activities.
The bank’s approach follows the acquisition of Virgin Money by CYBG in 2018. It encompasses its ESG agenda and incorporates four key pillars.
These include recognising the need to reduce negative impact on the planet; focusing on creating products and services that help its customers make a positive impact on society and the environment; encouraging greater diversity in its business, as well as supporting the sustainable practices and economic activity that create shared prosperity for all; and recognising the importance of transparency in how Virgin Money pursues its sustainability agenda.