NAB, NatWest Group, and SC Ventures have collaborated to support small and medium enterprises (SMEs) in reducing costs and enhancing resilience amid the climate transition. The initiative, called FourTwoThree, is developing a digital platform that will help SMEs assess their carbon emissions, understand reduction strategies, and secure necessary financing.
Jacqueline Fox, NAB's Chief Climate Officer, stated that the partnership aims to assist customers as economies worldwide strive for net-zero emissions. "Supporting SMEs to decarbonise is a globally shared problem," she said. SMEs are crucial for global economic decarbonisation due to their prevalence and role in innovation.
Fox highlighted the challenge of accessing data, resources, and financing for businesses aiming to decarbonise. In Australia, where SMEs represent 99.8% of all businesses according to ABS data, this effort aligns with national net-zero goals.
NAB's investment in FourTwoThree aligns with its climate strategy. "As Australia's largest business bank," Fox noted, "we are committed to supporting our customers to decarbonise." She emphasized the importance of enabling SMEs to focus on productivity while capitalizing on economic opportunities during the transition.
Once operational, FourTwoThree will be accessible through large enterprises with which SMEs have relationships. The platform offers reliable climate data for large institutions seeking competitive advantage and better risk management while supporting SME customers through automated footprint calculation and personalized guidance.
Launched at London Climate Action Week on June 24th, NatWest Group plans to introduce the platform later this year before expanding into markets like Australia and New Zealand. Valtech backs the platform's development on Amazon Web Services (AWS).
In 2023, NAB established a dedicated climate investment capability facilitating investments like FourTwoThree. Fox explained that NAB seeks equity funding opportunities in innovative companies and partnerships that enhance its climate capabilities.
"Meeting our climate strategy ambitions requires a broad approach," Fox said. By investing in new climate initiatives like FourTwoThree, NAB aims to help customers lower emissions while fostering innovation essential for reaching net zero.