Tesco, the UK’s largest supermarket chain, and NatWest, one of the country’s largest banks, have unveiled a new discounted climate and sustainable finance scheme aimed at supporting 1,500 of Tesco’s farmers.
The scheme is designed to provide preferential rates on finance, aiding farmers in transitioning to sustainable farming methods.
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Supporting sustainable agriculture
The initiative, developed with input from farmers, targets members of Tesco’s Sustainable Farming Groups for beef, lamb, and dairy.
Participating farmers will gain access to Tesco’s preferred suppliers, potentially receiving volume discounts on renewable energy assets.
This move aligns with the growing trend among farmers to adopt sustainable practices, including investing in renewable energy sources such as solar panels, wind turbines, and fossil fuel-free heating or cooling systems.
Breaking down financial barriers
Research indicates that more than 50% of Tesco farmers are interested in implementing changes towards sustainability but face challenges in accessing the necessary finances to do so.
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By GlobalDataThe upfront costs of transitioning to sustainable farming practices, including investments in equipment, pose significant hurdles.
Through this scheme, facilitated by Lombard, a leading asset funder and part of NatWest, Tesco farmers will have access to attractive funding solutions tailored to their needs.
Paving the way for a greener future
The partnership between Tesco and NatWest underscores a commitment to environmental stewardship within the agricultural sector.
By offering financial support and expertise, the scheme aims to empower farmers to invest in sustainable infrastructure, contributing to efforts to decarbonise farms and reduce emissions.
This initiative not only supports individual farmers but also aligns with Tesco’s broader goal of achieving net zero across its supply chain by 2050.
In the end, the collaboration between Tesco and NatWest represents a significant step towards promoting sustainability in agriculture.
By addressing financial barriers and providing access to resources, the scheme empowers farmers to embrace greener practices, fostering a more environmentally conscious food industry.
