Tesco has joined forces with NatWest to launch a discounted climate and sustainable farming finance scheme for 1,500 of its farmers.
The initiative will provide farmers with preferential rates on finance to help them switch to sustainable farming methods, including installing renewable energy sources such as solar panels and wind turbines, and fossil fuel-free heating or cooling systems such as heat pumps.
Farmers who are part of the grocer’s Sustainable Farming Group for beef, lamb and dairy will be able to take part in the voluntary programme and gain access to Tesco’s preferred suppliers, with potential volume discounts offered on renewable energy assets.
It comes as research found that more than 50% of Tesco farmers want to make changes but need help accessing finance to support them to make the investment.
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The funding solutions will be accessible through Lombard, the UK’s largest asset funder which is part of NatWest group and will be offered asset knowledge and sector expertise to help support the move to decarbonising their farms.
Tesco group chief commercial officer Ashwin Prasad said: “We know a lot of our farmers are looking at ways to reduce costs on farm and move to renewable sources of energy at the same time, which is why we’re delighted to be partnering with NatWest in offering our green finance initiative.
“The food industry has a clear role to play in ensuring we maintain food security while also helping to protect the environment, and we hope innovative programmes like this will play a crucial part in achieving this.
“The initiative will provide our farmers with the confidence to invest in sustainable farming methods and infrastructure, while also helping us meet our target of reaching net zero across our supply chain by 2050.”
The partnership said if the scheme proves popular, there is potential for it to be made available to more of Tesco’s farmers in the future.
