- The Commonwealth Bank announces a Property Sustainability Upgrade Loan for businesses to decrease the environmental impact of commercial buildings
- According to the International Energy Agency, buildings provide one of the most significant potentials for low-cost carbon abatement
- Companies can boost their loan by up to 20 per cent to complete property sustainability renovations to enhance NABERS rating or reduce emissions
- 60 per cent of commercial office buildings currently having a NABERS energy rating below 5 stars
The Commonwealth Bank (CBA) today announced a Property Sustainability Upgrade Loan for businesses to decrease the environmental impact of commercial buildings while lowering operational costs.
Buildings account for almost half of all power use in Australia, as well as nearly a quarter of all emissions.
According to the International Energy Agency, buildings provide one of the most significant potentials for low-cost carbon abatement in industrialised countries such as Australia.
Qualifying companies can boost their Commercial Property Investment Loan by up to 20 per cent to complete property sustainability renovations that enhance the property’s NABERS (National Australian Built Environment Rating System) rating or reduce carbon emissions, the bank said.
CBA collaborated with NABERS, a national programme managed by the NSW Department of Planning, Industry, and Environment, to create loan eligibility criteria that will assist companies in reducing emissions by at least 30 per cent while meeting or exceeding average market performance.
Eligible upgrades include energy-efficient lighting, lifts and escalators, solar panels and battery storage as well as eco and smart building management systems.
CBA executive general manager business lending Clare Morgan said sustainability renovations may dramatically decrease a property’s carbon footprint while increasing energy and water efficiency.
“As the largest commercial real estate lender in Australia, we play an important role in supporting the industry to lower its emissions,” she said.
“To encourage businesses — both our existing customers and new customers — to play their part and make these upgrades, we are offering the ability to borrow up to an additional 20 per cent, with zero line fees and no establishment fee through these loans.
“Investing in sustainability upgrades also makes commercial sense in that it can boost the value of properties while reducing operational costs, making the property more attractive to long-term renters and potential buyers.”
NABERS head of market development Magali Wardle said with over 60 per cent of commercial office buildings currently having a NABERS energy rating below 5 stars, the loan has the potential to make important efficiency upgrades.
“Depending on their situation and location, new green credentials could also make them eligible for other incentives like the federal government’s instant asset write off or various state-based energy upgrade schemes.”
According to JLL research of over 550 Asia Pacific occupiers and investors, 83 per cent of occupiers and 78 per cent of investors recognise climate risk as a clear financial concern.
Seven in 10 are even ready to pay a rental premium to inhabit green areas, indicating a clear need for landlords to reassess their present assets in order to future proof them, as well as a drive for investors to prioritise future investments by deploying capital in green-certified assets, according to the report.