Can a bank loan incentivise sustainable cities and communities?

Lloyds Banking Group, the largest retail bank in Britain, is aiming to encourage and support their customers when it comes to sustainability. They have introduced a new cut-rate loan that will offer their customers a discount if they are to achieve their sustainability targets.

Sustainable cities

The built environment is responsible for 36% of carbon emissions in the UK, it is therefore extremely important that we increase the number of green buildings which are buildings that, in comparison to those that are traditionally built, use less energy, water and improve the indoor environment, including air quality.


The biggest obstacle to investing in these green buildings is access to funding. Lloyds are therefore helping to alleviate this issue by offering £1 billion in cut-rate loans to clients seeking to improve the energy efficiency of their buildings. In 2016, they collaborated with Trucost, an environmental consultancy firm, to develop benchmarks. These will allow Lloyds to assess buildings and set efficiency targets that borrowers must meet to continue receiving the improved loan margin.


Property owners and developers are aware of the benefits that result from increasing their green credentials. By offering discounts, Lloyds is providing an extra incentive that will not only encourage their customers to invest in green buildings, but that will also encourage them to maintain their standards too.

This story shows how Lloyds Banking Group supports Goal 11: Sustainable Cities and Communities, specifically Target 11.9: “By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop the implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels..”

About Lloyds Banking Group

Founded over 250 years ago, in 1765, Lloyds Banking Group is one of the “Big Four” British retail and commercial banks. They offer an extensive range of financial products and services delivered by over 45,000 employees – that, over the years, have served over 16 million customers.

Learn more about Lloyds Banking Group.

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