COP26: How we’re helping pave the way for a net zero economy

The 2021 United Nations Climate Change Conference, otherwise known as COP26, is taking place in Glasgow between 31 October and 12 November. Its aim is to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.

On 19 October 2021, ahead of the summit, the UK Government published its Net Zero Strategy - a 368-page document outlining how spending will be prioritised to increase jobs while cutting emissions from transport, power, heavy industry and the built environment.

 The strategy provides a detailed account of how the UK will decarbonise in a way that "transforms every sector of the global economy". 

The Government has pledged £26bn in capital investment to achieve net zero by 2030. According to the strategy, the funds will support up to 440,000 jobs by 2030, and leverage up to £90bn of private investment by 2030.

The role of fintech in reaching net zero

According to the British Business Bank, SMEs are accountable for around a third of UK emissions. Net zero by 2030 relies on every business being equipped with the tools required to be able to decarbonise their operations. 

Financial services will play a vital role by providing business owners with the capital to accelerate change within their organisation. Technology will also play a part: innovative solutions are needed to instigate change at scale. 

Fintechs are well placed to facilitate large-scale funding and technological innovation. Many fintechs are already paving the way for a greener future by deploying new digital solutions. 

The transition to net zero relies on capital, and this can be harder to acquire for SMEs than larger companies. At Funding Options, as well as assessing our own carbon credentials, we’re leveraging data and technology to enable widespread access to green finance.

How is Funding Options playing its part?

Our sustainability policy provides an account of what we’re doing to become net zero by 2030. It also outlines how we’re playing an active role in green lending through our strategy, governance structure, approach to climate opportunities and Green Finance Initiative. 

For net zero to work, organisations need to look inwards at their own activities and outwards to find ways of helping partners, customers and affiliates reach their own green goals.

Looking inwards

Here’s what we're doing within our own company:

• Measuring our Scope 1,2 and 3 GHG emissions

• Frequently engaging with the SME lending market regarding climate change

• Creating and delivering educational content to our customers and wider business community on the importance of sustainability and net zero

• Training our employees on the importance of the sustainability agency and how we can work together towards net zero

• Becoming policy advocates by encouraging the Government to engage with the finance market in relation to driving climate reduction within the SME community.

Looking outwards

Our vision is to provide eligible businesses with the tools they need to access green finance quickly, easily and at scale. 

Increasingly, financial projects are rewarding companies committed to reducing their emissions, so it’s the perfect time for business owners to launch their green goals. 

Our Green Finance Marketplace is helping to close the funding gap. 

Business owners can use our platform to find the finance they need to fund renewable or sustainable activities. Businesses with a green product or service can use it, as can businesses that want to invest in a green asset, such as an electric vehicle.

All the lenders in our Green Marketplace are required to show a green commitment. Some provide products for the purchase or leasing of green assets, while others offer varied pricing rates for businesses with renewable or low/zero carbon activities/goals.

Are you a business owner?

If you run a business in the UK and require funding for a green asset or product, use our Green Finance Marketplace to see what you could be eligible for today. The process takes a couple of minutes and submitting an initial enquiry won’t affect your credit score.

Are you a business funder? 

If you’re interested in facilitating the shift to a low-carbon economy, join our growing panel of green lenders today. Our tech-led model ensures a fast, easy and reliable service, with Finance Experts available to support you throughout the signup process and beyond.