NAB, NatWest Group and SC Ventures have joined forces to support small and medium businesses as they look to reduce costs and strengthen resilience, while navigating the risks and opportunities of the climate transition.
The venture, known as FourTwoThree, is developing a digital platform that will enable SMEs to evaluate their carbon emissions, understand the actions they can take to reduce their footprint, and access the financing required to support those actions.
NAB Chief Climate Officer Jacqueline Fox says the partnership was born from a shared goal of supporting customers as the world’s economies shift to meet net zero emissions commitments.
“Supporting SMEs to decarbonise is a globally shared problem. SMEs play a critical role in the decarbonisation of economies worldwide, not only because they account for around 99% of all firms across the OECD, but also due to their contribution to innovation and its adoption.
“The challenge for businesses in this space is gaining access to the right data, resources and financing to support their decarbonising efforts,” Ms Fox said.
Closer to home, decarbonising SMEs is vital to Australia’s net zero goals, with ABS data showing they represent 99.8% of all businesses.
Ms Fox said the investment in the venture supports NAB’s climate strategy.
“As Australia’s largest business bank, we are committed to supporting our customers to decarbonise, build climate resilience and take advantage of the economic opportunities of transition,” Ms Fox said.
“We understand SMEs can be time poor and in business, time matters. We want SMEs to be able to focus on their productivity and growth and take advantage of the economic opportunities of the transition.”
Once operational, SMEs will access FourTwoThree through their relationships with large enterprises—either as customers or suppliers.
“The platform is designed for large institutions to access reliable climate data for competitive advantage, better risk management and to meet emerging reporting standards. It will also allow them to support and empower their SME customers and suppliers through automated footprint calculation and by providing personalised guidance and recommendations,” Ms Fox said.
FourTwoThree was launched June 24th at London Climate Action Week. NatWest Group is expected to be the first to offer the platform to its customers later this year, with expansion into additional markets, including Australia and New Zealand, to follow.
Creating a seamless, safe and fast platform for SME customers has been a priority throughout development. The platform is backed by Valtech, a leading technology partner, and built on Amazon Web Services (AWS).
In 2023, NAB established a dedicated climate investment capability which has facilitated the FourTwoThree investment.
Ms Fox said the goal was to provide equity funding to innovative early and growth-stage companies, joint ventures, partnerships and new businesses with the potential to accelerate NAB’s climate capability and support customers through the transition.
“For NAB, meeting the ambitions of our climate strategy requires a broad approach. We must reduce our own emissions, support our customers to reduce theirs and build resilience, and fund the projects critical to the transition. The final element is seeking out the right investments and partnerships – such as FourTwoThree’, Ms Fox said.
“Through investing in new climate businesses and initiatives, we will be able to access new ways to support our customers in lowering emissions, whilst driving the innovation we need to reach net zero, and secure Australia’s prosperity in a low carbon world.”
ENDS
Background points for media:
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- FourTwoThree is named after the peak atmospheric CO2 levels recorded when the founding team first connected (423 parts per million).
- The FourTwoThree venture brings together NAB, NatWest Group, SC Ventures and UK based digital consultancy Valtech as equity partners. It is built on Amazon Web Services.
- It is a digital platform that will allow SMEs to evaluate their carbon emissions, understand what actions they can take to reduce their footprint and access the financing needed to support their actions.
- FourTwoThree will be accessed by SMEs via large enterprises, either as a customer or a supplier.
- For large enterprises, it provides a credible data-driven platform designed for large institutions to access reliable climate data for competitive advantage, better risk management and to meet emerging reporting standards.
- This two-way value exchange and collaboration within global value chains is key to meaningful progress towards transition goals.
Want to know more about FourTwoThree or NAB’s Climate Investing capability? Contact us at climatepartnerships@nab.com.au.
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