Unity Trust Bank, a social impact bank, has launched a new Green Tariff lending facility, ringfencing £100million to support organisations implementing energy-efficient projects. The new tariff is designed to make sustainable investment more accessible and affordable by offering favourable lending terms to organisations looking to reduce emissions and future-proof their buildings.
The initiative is available to both new and existing customers and aims to accelerate the UK’s transition to its net-zero goals. The launch comes as data shows that residential and commercial buildings combined are responsible for 20-21 per cent of the UK’s total carbon emissions.
Supporting the transition to a low-carbon economy
The £100million in ringfenced finance is available for eligible energy saving and carbon reduction projects. These include the installation of low-carbon heating, improved insulation, small-scale renewable energy generation, and climate resilience measures.
The tariff is also designed to support organisations that have already achieved high levels of energy efficiency, rewarding those who have previously invested in sustainable practices.
Matt Conroy, head of impact propositions at Unity Trust Bank, said: “With a government target for the UK to reach net zero by 2050 and the increased costs of energy, it’s important to find solutions to support our customers to move to a low-carbon economy. As a social impact bank, we believe that finance has an important role to play in achieving a greener future.”
Conroy added: “This new tariff is aimed at helping customers to significantly reduce their carbon footprint, adopt more sustainable practices and protect the environment. The terms are designed to be clear, easily understood and to provide fair value to customers through transparent pricing and tangible cost benefits.”
Building on a successful retrofit model
The new Green Tariff replaces Unity Trust Bank’s pioneering Retrofit Transition Initiative (RTI), which launched in 2023. The RTI was a successful, award-winning programme that focused on supporting the delivery of energy efficiency measures within the UK’s social housing stock. To date, over 1,770 affordable homes have benefited from RTI funding.
The new tariff expands this model from a niche focus to all of the bank’s customers, regardless of sector.
“Through Unity’s RTI we were able to support the delivery of energy efficiency measures within the UK’s social housing stock,” Conroy added. “We will now be able to do this for all our customers through retrofit and decarbonisation improvements, energy efficiencies and clean energy technology. We also want to support organisations that have already improved the energy performance of their buildings, and contributing to a low carbon economy.”
A 40-year history of social impact
The launch aligns with Unity Trust Bank’s long-standing commitment to social and environmental impact. The bank, which has operated for over 40 years, has set its own Net Zero target by 2045 and is a signatory of the Fossil Fuel Non-Proliferation Treaty.
Unity excludes funding for high-carbon or high-polluting industries and assesses every loan proposal for its positive social, economic, or environmental impact, aligning each loan to one or more of the United Nations’ Sustainable Development Goals. In 2024, the bank’s commitment to values-led banking was recognised with the King’s Award for Enterprise for Sustainable Development.
