Westpac has announced a host of sustainability initiatives as part of an expansion to its Warm Up loan programme. And those with electric vehicles are set to benefit.
The company has confirmed that the loan will now include an interest free $40,000 available to customers over five years, with electric vehicle home chargers and solar batteries being two of the applicable uses.
Previously the Warm Up programme only allowed $10,000 over five years for funding clean heating solutions at home, insulation, and ventilation among other home improvements. These are all still applicable uses for those wanting to apply for the scheme.
The loan is available to those living in their own homes, and also to landlords. Those who use the loan and sell their home to buy a new one are eligible for a second loan should they want it.
“Climate change is a growing threat to our environment, communities and business. Cutting emissions reduces risk, helps protect the world we live in for future generations and also creates opportunities to do things in new ways,” says Westpac NZ chief executive Catherine McGrath.
“Over the past 10 years we’ve reduced emissions from our own operations at Westpac NZ by 60%. With today’s announcement we’re lifting our game across the bank to support our customers to reduce their carbon emissions.
“Our expanded Westpac Warm Up loan will allow customers to borrow up to $40,000 interest-free to make their home warmer, drier, more sustainable and energy efficient. EV charging equipment and solar batteries can now be funded through the loan.
“We’ve already lent more than $30 million interest-free through Westpac Warm Up and aim to get to $100 million. As well as supporting customers to live more sustainably, these loans also help with cost of living pressures through the zero interest charged and in many cases reduced energy costs.”
Westpac Australia recently announced that it would offer superior interest rates to those purchasing an electrified vehicle relative to those buying a petrol or diesel vehicle. Westpac NZ confirmed to AutoTalk in June that it would not be adopting the scheme.
The news comes as Westpac Group confirms that it’s signed up to the UN-convened Net-Zero Banking Alliance. As part of the alliance, Westpac NZ is now committed to a net zero portfolio by 2050 and will set lending emissions targets by 2030.
In its Warm Up release, Westpac NZ didn’t acknowledge whether the setting up of targets by 2030 will make it tougher for those wanting to apply for a loan to buy an internal combustion vehicle. However the release did acknowledge that the brand no longer lends to mining companies or mobile truck shops.
Westpac NZ also noted that it’s set to pilot a new Sustainable Agribusiness Loans scheme with a small group of farmers. This will see the firm provide guidance on how farmers can reduce their emissions and deliver “more sustainable outcomes”.
“Once farmers commit to meet the guidance, they have two years to achieve that goal and will be supported with discounted loan pricing,” Westpac NZ explains. The agribusiness-aimed loans are expected to roll out to a wider group next year.
