NatWest: How to Accelerate Energy Efficiency in Buildings
NatWest Group is a giant in banking, serving over 19 million customers.
With so much influence it has the potential to make an enormous impact in the pursuit of sustainability.
NatWest Group’s August 2024 report on accelerating energy efficiency in the built environment provides a range of actionable insights alongside showing the benefits it can bring.
Marcos Navarro, Director and Sustainability Lead for Real Estate & Housing Finance at NatWest Group, says: “This report pinpoints eight opportunities for action to reduce total UK energy demand across domestic and commercial buildings.
“If followed, these actions could contribute not only to energy efficiency but also to a more prosperous, resilient and sustainable environment.
“While there are many challenges facing us, I’m confident that if we harness the impetus for change, we can create positive opportunities that improve our communities, our economy, our health, and move towards a net zero environment.”
NatWest Group
National Westminster Bank (NatWest) Group is a British banking and insurance holding company.
Founded in 1968, the company is listed on the London Stock Exchange and New York Stock Exchange.
Previously known as RBS Group, its subsidiaries include NatWest Holdings Limited and NatWest Markets Plc.
The company aims to be net zero across its financed emissions, assets under management and operational value chain by 2050.
In 2023 it had revenue of £14.7bn (US$18.8bn) and 61,500 employees.
Benefits of energy efficiency
The report says energy efficiency could also have wide ranging benefits from increasing industrial productivity to making energy bills more affordable.
It can help to shield the UK from geopolitical shocks by reducing over-reliance on energy imports and generate up to 125% of money invested by the government in tax revenue.
Money invested in energy efficiency could produce up to 320% more in GDP.
Reduced exposure to the cold and pollution can save 320,000 life years over the next 27 years alongside saving costs for the NHS.
Andrew Gray, MD of Commercial Mid-Market at NatWest Group, says: “The imperative to tackle climate change is more pressing than ever.
“A crucial step towards meeting this challenge is increasing energy efficiency in the built environment.
“However, energy efficiency is not simply a climate issue: it can also boost GDP, improve energy independence, enable more efficient manufacturing, decrease emissions and place less strain on the public budget.”
Examples of improving energy efficiency
Heating is responsible for roughly 70% of a home’s energy consumption but heat pumps are four times as efficient as conventional fossil fuel boilers, potentially providing a 45% reduction in buildings’ energy demand.
NatWest Group’s report says that to achieve the demand reductions needed in buildings in the UK, one million homes need to be treated with insulation measures annually by 2030 and over 600,000 heat pumps need to be installed annually by 2028.
Poland and Germany have both rapidly expanded their use of heat pumps, showing how it can be scaled up quickly.
Poland introduced an electricity price cap alongside other programmes and subsidies, and Germany put subsidies and strong policy support in place.
Opportunities for action on energy efficiency
The report pinpoints eight opportunities for action to improve energy efficiency in the built environment and bring these benefits to the UK:
- Provide long-term clarity on regulation, policy and future funding streams
- Ensure that individuals and companies have access to clear, accurate and reliable data on energy efficiency
- Increase demand and accelerate action
- Create a frictionless journey
- Improve supply chain and increase skills training in sustainability in the supply chain
- Better explain the potential value added
- Use public-private partnerships to accelerate delivery
- Match financial incentives and products to demand
Acting on these opportunities could help to make the UK more sustainable and bring the benefits of energy efficiency to everyone.
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