NatWest is set to introduce a carbon tracking app tailored for small and medium-sized enterprises (SMEs) following research indicating that 90% of businesses lack awareness regarding their total carbon emissions.
The app, created in collaboration with fintech partner Cogo, will initially be trialed with select SMEs in the manufacturing and transport sectors before a broader rollout. NatWest asserts that, with appropriate support, the UK’s six million SMEs could play a crucial role in achieving up to 50% of the nation’s Net Zero decarbonization targets by 2030, representing an estimated £160 billion in potential revenue.
Through the app, SMEs will be able to analyze their transactions and estimated carbon footprint, monitor changes in emissions over time, and compare month-on-month data. Additionally, the app provides actionable insights on how businesses can reduce their carbon output and access resources to facilitate their journey toward sustainability.
This initiative follows the successful introduction of a similar carbon tracking feature for retail customers last year, with over 150,000 users engaging with the app since its launch in November 2021.
Andrew Harrison, Head of Business Banking at NatWest Group, commented: “We understand that many SMEs find it challenging to embark on their sustainability journey due to a lack of resources and knowledge about their environmental impact. There are significant opportunities across all sectors; however, the transport, agriculture, and industrial sectors present the most immediate potential for positive business outcomes.”
The upcoming launch of the carbon tracking app comes on the heels of NatWest’s Climate Hub initiative, which provides eligible SMEs—investing in clean buildings, energy, transport, and agriculture—with essential information on applying for green loans and funding for sustainable assets.