Danske Bank launched the UK’s first mortgage certified as carbon neutral by the Carbon Trust to tackle emissions generated throughout the mortgage life cycle.
Physical paperwork forms the largest part of the footprint but other activities taken into account included energy consumption in Danske’s offices, digital paperwork at each stage, paper waste generation and a welcome box provided to customers.
The Carbon Trust calculated that each mortgage produces around 96kg of carbon, equivalent to driving 241 miles driven in an average car or charging 11,678 smartphones.
To achieve carbon neutrality for our mortgage service, Danske has committed to keep reducing this carbon footprint yearly and to offset any remaining emissions by investing in projects that reduce emissions.
Commenting on the importance of sustainability in the mortgage sector, Danske Bank managing director of personal banking Aisling Press said, “Domestic homes generate an estimated 15% of the UK’s greenhouse gas emissions, so improving the energy efficiency of our homes is crucial in the fight against climate change.
“The mortgages we’ll provide on greener homes won’t contribute to rising greenhouse gas emissions.”
Press added that the bank’s branches and offices are “already carbon neutral in the heating and electricity” it uses. “We have a responsibility to support customers who choose a greener home. We’ve therefore made the Carbon Neutral Mortgage our most competitively priced mortgage and launched a new cashback offer of up to £2,000,” she said.
Danske will work with carbon reduction specialists ClimateCare to offset the environmental impact of the mortgage by supporting wind energy projects in India.
First-time buyers, home movers, and switchers, with a home Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) rating of A to C, are eligible to apply for the Danske Carbon Neutral Mortgage.
Carbon Trust Advisory associate director John Newton added, “The Carbon Trust is pleased to certify Danske Bank’s mortgage service to the PAS 2060 Specification, demonstrating the carbon neutrality of the activities associated with the provision of the service.
“The initiatives that Danske Bank has undertaken to achieve this certification demonstrate the company’s commitment to continually reduce and offset the carbon impacts of their mortgage product.”
Danske head of climate risk & strategy Chris Martin said that the bank is committed to reducing our greenhouse gas emissions by 50% by 2030. “We’ve already delivered significant reductions in the emissions produced through our own operations, for example through more energy-efficient heating systems, LED lighting, solar panels and changing our company car policy,” he continued.
The bank has also been providing sustainability training for employees and has developed a climate literacy programme with Business in the Community for businesses.
