Funding: Green is for go

By Ged Henderson

14 Apr 2022

The power surge in investment in businesses with strong Environmental Social and Governance (ESG) credentials shows no sign of weakening.

With sustainability and the Net Zero agenda becoming increasingly important when it comes to doing business, green finance is also on the rise.

A recent survey of Northern Powerhouse Investment Fund investee businesses revealed nearly a third had used the cash received to reduce their environmental impact.

Three quarters of them had used the finance to improve their environmental practices, with half adopting low carbon technologies and 20 per cent having developed net zero plans.

They include innovative businesses like Skelmersdale based Extreme Low Energy (ELe). The manufacturer of connected electrical solutions received a £750,000 investment from NPIF – Maven Equity Finance, helping it to pioneer a new low-power product.

Its Eco Off-Grid Leisure Kit was created help meet the surge in demand for staycations over the last year.

Sue Barnard of the British Business Bank says: “Green finance has developed over the years. Historically, funds were set up specifically to serve green or ‘impact’ investments however, it is much more commonplace today that any given investment will have some sort of green element.

“Whether it is funding directly for a business working to plug a gap in the sustainability market, or one that is seeking investment to progress its own ESG initiatives, the demand is there and it’s growing.”

She adds: “This growth is enhanced by the collective efforts of businesses, alongside ambitious green investment plans from combined authorities, Local Enterprise Partnerships, Growth Hubs and other stakeholders in the region.”

Sue points out that across Lancashire’s northern border, Cumbria has launched its own green investment plan, “looking to identify and develop transformative opportunities to create sustainable prosperity”.

Jill Morris, partner at Lancashire headquartered business advisory and accountancy practice PM+M, says it is important that businesses realise they don’t have to operate in the green sector to benefit.

She says: “It may be funding for carbon reducing technology or a green project you are looking to set up in a different part of the business. When it comes to sustainability there is wide criteria.”

In some cases, there may be better rates on offer, it depends on the lender and the business.

Jill says it makes sense for businesses to consider all the options available and look to see if the project or investment they are looking to fund has a green angle. “You may be able to use that fact to grow and take the business to the next level,” she adds.

High Street lenders are also joining the sustainability surge. HSBC UK has launched a £500m ‘Green SME Fund’ as part of its commitment to support businesses of all sizes to “transition and thrive” in a low carbon economy.

The fund is available for businesses with a turnover of less than £25m, offering one per cent cashback on loans, starting from £1,000 to help SMEs invest in green activities.

Launching the fund at COP26 last November, chief executive Ian Stuart, said: “Companies of all sizes and sectors have a role to play in the journey to net zero, however the sustainable finance market has been predominately focused on larger corporations.

“It’s critical that access to funds isn’t a barrier for small and medium sized businesses working to achieve lower carbon emissions.”

NatWest has now launched its green loans and asset finance propositions, with no arrangement fees for qualifying SMEs investing in eligible clean buildings, energy, transport and agriculture.

The bank had earlier announced its ambition to provide £100bn of climate and sustainable funding and financing to customers by the end of 2025.

Announcing the loans, Paul Thwaite, NatWest’s chief executive of commercial banking, said: “Climate change is one of the biggest global challenges we face today, and SMEs have a critical role to play in helping the UK realise its green ambition.”

Meanwhile, a new green innovation fund has been launched to help Lancashire SMEs from all sectors transform their ideas into reality in the race to net zero.

Businesses, charities and social enterprises in the county can get up to 60 per cent funding towards projects worth £25,000 to help them deliver sustainable products, processes or services.

The £400,000 scheme is managed by Eco-I North West (NW), a £14m research and development programme connecting SMEs to the knowledge, research facilities and skills of six of the region’s universities, including Lancaster, UCLan and Cumbria.

The new grants will accelerate low carbon innovations from research to commercialisation by match funding prototypes, pilots and demonstration systems.

Andy Pickard, manager of the Centre for Global Eco-Innovation, based at Lancaster University, which delivers the programme, says: “More than 100 enterprises from a wide range of sectors, disciplines and project themes are already collaborating with the partner universities and could double their potential return on R&D investment.

“These grants will further support those already working with the universities and expand the benefits Eco-I NW can offer to even more SMEs, to bring to market even more sustainable products, processes or services.”

Arid Agritec, a crop manufacturer based at Lancaster, is working with the programme to develop its algorithm-based technology to improve consumer safety and reduce waste in global fresh produce supply chains.

Director Dr Wagdy Sobeih says: “Eco-I NW has provided us with invaluable support via funding and coding expertise which has allowed us to build a demonstration app that will allow us to secure full investor funding and bring our technology to the global market within the next two to three years.”

Enjoyed this? Read more from Ged Henderson

Latest news

1

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin