Business Loans for Climate Resilience in the UK
It’s an uncertain time for green finance. Across the financial services industry in the UK, countless institutions have withdrawn from their green initiatives, potentially following suit after major banks such as Natwest and Barclays dropped climate targets from their annual bonus schemes for senior executives, and HSBC effectively hit a 20-year pause on its net-zero target. This scaling back on ESG commitments appears to be a widespread trend, with US President Donald Trump immediately signing an executive order withdrawing the US from the Paris climate agreement upon his return to power, and later sanctioning the cancellation of funding for various clean-energy projects. Ultimately, this dramatic u-turn could lead to investor anxiety and both the US and the UK losing their green finance edge to the EU.
Are green initiatives really that important for businesses?
A widespread watering-down of ESG and carbon-zero commitments could give rise to uncertainty on the overall imminence and effects of climate change. With 55% of global GDP (approximately £45.8 trillion), significantly reliant on natural resources, many might argue that now is not the time to ease off on green initiatives.
What’s more, consumers are still willing to pay a premium for sustainable products despite rising cost-of-living concerns and sustained inflation – this was identified by a NielsenIQ survey carried out in 2022, and again highlighted in 2024 by the PwC Voice of the Consumer Survey.
It is the future generations of the C-suite that are shaping these trends. Both Millennials and Gen Z are doing the heavy lifting when it comes to pushing the sustainability agenda forward. A global Deloitte survey of almost 23,000 Millennials and Gen Zs revealed that almost half of the individuals within each generation (42% and 26% respectively) had already changed their jobs or industries due to climate concerns in 2023. These younger generations are set to hold the purchasing (and investing) power by 2030, with $18.3 trillion set to change hands in what has become known as the Great Wealth Transfer.
UK progress in adapting to climate change
In their 2025 report to parliament, the Climate Change Committee (CCC) has concluded that the UK’s preparations for climate change are inadequate. The executive summary highlights four key areas of action, being:
- Improve objectives and targets, calling on the Government to ‘communicate clearly the respective roles of government, the private sector and households in delivering and funding adaptation.’
- Improve coordination throughout, ensuring efforts throughout departments and sectors are better linked with wider resilience planning.
- Integration of adaptation into all relevant policies. Public assets, and critical public services such as the NHS, need to be resilient to current and future weather so that they can operate effectively, and in the case of new infrastructure, without costly retrofitting.
- Implement monitoring, evaluation and learning across all sectors using regular data collection and reporting to track climate impacts and the effect of adaptation measures at a national level.
The report also highlighted critical areas of concern throughout the UK, such as:
- Most productive agricultural land in the UK is at high risk of flooding, with farms around towns and cities vanishing rapidly
- In addition to agricultural land, rail and road infrastructure, homes, and businesses face flood risk. Over a third of all road and rail km are currently at risk, set to rise to half by 2050.
- The summer of 2022 saw lineside fires, power cuts, buckled roads and damaged runways in the UK, where the record-breaking heatwave caused severe impacts to infrastructure. The CCC also predicts that heat-related deaths will rise.
- Steadily rising sea levels at the UK’s coasts are also increasing the risk of coastal flooding and exacerbating coastal erosion. Between 5,000 to 45,000 properties could be in areas at risk of coastal erosion by 2050, depending on how coastlines are managed.
This could lead to a renewed focus on behalf of the Government on their Green Financing Programme, or potentially even future sanctions against businesses who are not able to demonstrate climate resilience planning and monitoring. As the “steering wheel” in navigating the private sector towards good for society and the environment, the Government has a responsibility to respond.
With all of the above in mind, it could be argued that businesses turning their back on climate commitments may be at risk of falling behind, losing the interest of new-gen investors and simply not protecting themselves against any potential extreme weather events. Those with a proven record of climate resilience planning may gain a competitive edge via continued – or renewed – commitment. They may also become an attractive addition for investors looking to ‘derisk’ their portfolio against the drain on revenue, innovation and productivity that fossil-fuel-dependent companies entail.
How can British businesses tackle climate resilience?
British businesses of all shapes and sizes can tackle climate resilience by reducing emissions, managing climate risks, and being proactive in their approach to operations. This could include transitioning to renewable energy, improving energy efficiency, optimising supply chains, and developing climate-resilient infrastructure, such as relocating or altering resources to lessen impact. Efforts can range from installing LED lighting to commissioning audits on energy consumption with actionable insights for improvement.
For example, in 2021, Scottish distribution firm, M&H Carriers hit the headlines after investing £100,000 to introduce 10 new electric vehicles into its delivery fleet. The firm’s managing director, Fraser McLean, revealed, “I realised that we were part of the problem,” after discovering that Inverness’ main thoroughfare, Academy Street, where M&H Carriers regularly deliver, was one of the most polluted streets in Scotland. “When I heard about the pollution, I was horrified. So I thought, as a transportation company, we needed to be doing our bit to help reduce it.”
Similarly, White Oak UK were recently able to assist a prominent property management company in actioning a renewable energy audit. Projected to increase their monthly income and boost each property value by 20%, the implementation of renewable energy has also allowed them to switch from fossil fuels to renewable resources, lowering their carbon footprint and strengthening climate resilience all while increasing the bottom line.
Get fast funding from White Oak UK
With instant eligibility checks and same-day funding decisions, White Oak UK is perfectly poised to assist British businesses in helpin them fund their climate resilience and carbon emissions goals. Safeguarding your assets against climate shocks, planning for future profitability and striving for environmentally-conscious innovation are all exciting opportunities – we’d love to discuss them with you.
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