Danske Bank – the Danish multinational bank, has launched the first UK mortgage to be certified as carbon neutral. Carbon Trust has provided the certificates and measured the carbon footprint of providing mortgages.
According to the calculations, the emissions per mortgage comes at 96kg of CO2 equivalent, which is the same as driving 241 miles in an average car. They include the green house gases (GHGs) generated throughout the mortgage lifecycle.
The largest part of the carbon footprint of the mortgage providing process is taken by physical paperwork. Other activities are energy consumption in Danske’s offices, digital paperwork at each stage, paper waste generation and a welcome box provided to customers.
“At Danske Bank, we’re already carbon neutral in the heating and electricity we use in our branches and offices. So the mortgages we’ll provide on greener homes won’t contribute to rising greenhouse gas emissions,” said Aisling Press, the Managing Director of Personal Banking at Danske Bank.
Danske’s Carbon Neutral Commitment
The Danish bank has committed to reducing its emissions by 50% by 2030. To achieve that, it has cut GHG emissions from operations. Some of the steps it has taken are more energy efficient heating systems, LED lighting, solar panels and changing the company’s car policy.
The bank claims it also provides sustainability training for employees and has developed a climate literacy program with Business in the Community for businesses. The Carbon Neutral Mortgage, however, is one major step further in its efforts to develop carbon neutral products and services.
The company offers home buyers up to £2,000 cashback with every mortgage on a home with a valid Energy Performance Certificate (EPC) rating A-C. Providing the emission reduction will be the carbon offset specialists ClimateCare via wind energy projects in India.
For people willing to offset carbon emissions, the Danske Bank carbon neutral mortgage is a potential solution as it won’t contribute to rising emissions. It shows true innovation in the net zero economy and a commitment to truly reduce society’s environmental impact.