In October 2021 the UK government released their roadmap of how they plan to become a leader in sustainable investing. This means that the finance sector needs to adapt and start embracing climate change. With the ambition of having a zero emission focus it is important for all to start embracing change, no more so than the finance and investment sectors.
The phrase sustainable investing is one of those industry “buzz words”. It relates to an investment which is focussed on ESG (environment, social and governance) factors. For a business to secure funding, they must present their sustainability plans which demonstrate a positive movement for corporate responsibility. The long-term future needs to recognise the changing climate and ensure the business gives adequate focus to their environmental responsibilities.
If we consider what this means from a business funding aspect, there is now a specialist package available known as sustainable finance. This solution will consider all the important ESG factors when deciding whether the funding is approved or rejected. Often the types of projects involved are improvements to energy efficiency, investments in social and environmental practices, purchasing of green vehicles or economically friendly campaigns.
A business now has a commitment to ensure it gives adequate time and resource to its sustainability and environmental responsibilities. This will often result in a need for some form of investment, and this is where business finance is so important. The use of asset finance is proving very popular for the purchase of environmentally friendly solutions which can help improve the efficiency and or growth of the business.
The investment in making a business sustainable and green is a brighter future for all. Of course, there is no quick fix, its takes time, money and resources but in the long term a positive change now means a brighter and healthier horizon.
As a nation and to meet the government roadmap of becoming sustainable we all must start making a major contribution. Not only are the NGI team constantly looking at best practice in our own operating processes, but we are also passionate about helping businesses with their green responsibilities.
If you need help with any form of sustainable investing, we would be happy to help. Please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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