A springboard to sustainable recovery

Coinciding with COP27 in Egypt, NatWest issued its ‘A Springboard to Sustainable Recovery 2022’ report.

The report highlights the key role that SMEs can play in decarbonisation, while shining a light on the opportunities for regional growth in the journey to net-zero.

In the North West alone, meeting net zero targets is predicted to bring a £33bn revenue boost between now and 2030, with key sectors where SMEs are in a position to capitalise including retrofitting homes and buildings and servicing the local renewable electricity infrastructure.

Of course, the report comes in the context of a turbulent macroeconomic environment that can’t be overlooked, with many SMEs facing unexpected challenges and tighter cash flows.

Understandably, against this backdrop longer-term environmental ambitions could be at risk of taking a back seat while more immediate concerns take precedent.

However, despite the turmoil, the business case for decarbonisation is stronger than ever and many of the SMEs I speak to across the region are looking towards renewables not just as a future opportunity but also as a positive solution to offset some of the more immediate financial pressures they may be facing.

And this is sound logic. In fact, the Springboard report highlights that if energy prices remain elevated, installing on-roof solar panels could pay back 25 per cent faster today than in 2021, while installing a heat pump now would pay back in half the time that it would have taken just a year ago.

For qualifying SMEs looking to make these changes and take steps toward sustainability now, NatWest has launched its Green Loans and Green Asset Finance products.

Looking ahead it shouldn’t be forgotten that SMEs are still pivotal to driving the next decade of decarbonisation in the UK and, despite the current challenges, ideally placed to harness the revenue opportunities identified in the report, which is available to read on our website.