BNZ is offering a loan discount to dairy investor Southern Pastures, if it meets water and biodiversity targets on its farms, in a New Zealand first.
The $50 million sustainability-linked loan is a pilot but BNZ will roll it out more widely if successful.
In 2019 ANZ entered into a loan agreement with Synlait tied to Environmental, Social and Governance (ESG) metrics, in particular lowering its carbon footprint.
BNZ chief executive Angela Mentis said the bank would increasingly use lending linked to environmental targets with farmers, agribusiness and other sectors to meet the county’s climate change obligations.
“There is great work under way on New Zealand farms, throughout the primary sector and other sectors. We want to partner with businesses who are striving to go above and beyond compliance minimums and show what best practice in environmental management, labour and governance looks like,” she said.
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