Innovation in Sustainable Finance - LLoyds International

Judges rewarded Lloyds International’s Eco-Home Proposition

|10 March 2025

Introduction

Lloyds Bank International has launched the innovative Eco-Home proposition which aligns with the goals set out in the “Jersey for Good – A Sustainable Future” report, specifically focusing on decarbonizing the built environment.

The Eco-Home proposition is a pioneering effort in Jersey and the Crown Dependencies, designed to support the retrofitting of existing homes and the purchase of energy-efficient properties.
This initiative is particularly important for Lloyds International as one of the Island’s mortgage providers because it supports the scaling up of sustainable finance in Jersey and contributes to the Island’s sustainability goals. Heating, cooling, and cooking in homes and businesses account for around 35% of Jersey’s GHG emissions, with around 20,000 homes needing retrofitting, according to the Government of Jersey’s Carbon Neutral Roadmap.

By making energy-efficient homes more affordable and reducing energy bills, we are driving a change in consumer behaviour towards decarbonizing homes. The educational aspect of our proposition helps customers understand the impact of their energy consumption on their carbon footprint and the value of sustainable living

What We Did

The Eco-Home proposition was created in three stages:

Eco Home Tool: In partnership with the Energy Savings Trust, we built a tool that helps customers identify potential energy savings and create personalised action plans to reduce their carbon footprint and save money on their energy bills
Home Booster Loans: We help customers to finance home improvements that improve energy efficiency which can often have a large upfront cost with benefits in the form of lower energy bills that occur over a longer period of time. To improve the return on investment for customers we offer up to £1000 cashback on borrowing for eligible sustainable home improvements, with an easy online application process.
Eco Mortgages: To encourage customers to retrofit or purchase energy-efficient homes with an EPC rating of A or B, we provide our lowest mortgage rate, with no Loan to Value (LTV) tiers. This innovative approach benefits those with the least equity, such as first-time buyers helping to make a Just Transition possible

How We Did It

The Eco-Home proposition was meticulously designed to address the specific needs of Jersey’s housing market and its environmental goals. By collaborating with the Energy Savings Trust, we ensured that our Eco Home Tool provides accurate and actionable insights for customers. The cashback incentive and simplified application process make it easier for customers to undertake green home improvements. Additionally, our decision to remove LTV tiers for energy-efficient homes demonstrates our commitment to making sustainable living more accessible and affordable.

Environmental Impact

We anticipate that energy-efficient homes will present lower credit risks due to better affordability and more resilient asset values. Our ambition is to reduce our financed emissions by 50% by 2030, with the Eco-Home proposition playing a key role in achieving this goal. This initiative underscores our commitment to a “Just Transition,” ensuring that no one is left behind in the move towards low-carbon living and helping Jersey achieve its net-zero ambitions by 2050.