Green Finance and the Impact on your Care Home Sustainability Journey

With discussions around environmental and green sustainability increasing in the care sector as we await the Regulators to incorporate them within their care home service inspection this article throws a light on What is Green Finance and the Impact on the Care Home Sector.

What is Green Finance?

With increased investment in green criteria envisaged in the decades ahead green finance is anticipated to have a stronger footing on the care home sector going forward.  Green finance for the care home sector refers to green investment projects and green loans, and we anticipate lending institutions to actively seek greener criteria when care home providers seek to refurbish, extend and acquire existing care home properties.  Green criteria is already part of building an extension and new care home property development with Bio Diversity net gain and the journey to a carbon free environment high on the agenda for new projects.

Green Investments

Green investment when talking about a care home property refers to green refurbishment and energy projects like sourcing sustainable furnishings (BoConcept), renewable energy (solar, wind, hydro, biomass), energy efficiency, sustainable use of land and care home conservation projects alongside efforts to reduce waste such as recycling innovation and reducing one use plastic.

Green loans

Green loans will increasingly become available as lenders address their green lending policies and these will no doubt form part of a care home’s business strategy when considering finance for a particular project like a refurbishment programme, equipment upgrade, extension and new build.

These green loans will request that certain criteria is evidenced and met so that applicants for the finance can, for example, benefit from discounted lend rates.

Sustainable Investing

Rondi Allan of Sustainable X discussed sustainability in a care home environment as a team effort which encourages the whole team to take part in increasing the sustainable efforts of a care home, incorporating Environment, Social and Governance (ESG) factors into the operational aspects of taking part in and running a care home for the benefit of all its stakeholders.

In turn the promotion of a green strategy can have a positive impact on the local community resulting in positive PR emphasising the long-term sustainability and ethical impact of the care home.

Importance of Green Finance

We all want the best for future generations and green finance can help to support a positive and ethical culture within a care home environment, helping to give purpose and a new lease of life to residents. 

Surplus land on a care home’s estate can encompass renewable energy projects such as a solar farm, in the future perhaps resulting in the care home running off pure green energy, and in turn playing a part in climate change mitigation.

Care home projects to include residents, their families and staff, help to bring the whole care home and wider community together.  This could include creating conservation areas within the care home setting, encouraging natural resources and biodiversity.  This could include wild planting areas, bee and insect friendly habitat creation, tree planting and natural produce creation.

Energy efficient extensions and new builds

Whether you are considering an extension to your care home or a new care home development in its entirety green finance supports your care home business through retrofitting existing buildings or constructing new ones with energy efficient technologies and building materials across the supply chain reducing energy consumption and carbon footprint.

Sustainable transport

Whether your care home is situated in a town, city or rural area, transport is an added factor to consider in support of your staff recruitment and retention.  Offering cycle to work schemes, car sharing and a minibus collection service can make your care home service stand out from the crowd.  Offering charging stations to promote greener transport is anticipated to accelerate over the next decade.

Measuring and Reporting your green impact

As technology continues to innovate measuring and reporting your care home’s green impact will become a natural part of the business operations. PR to showcase your green strategy will also have a positive impact on care home occupancy, staff recruitment and retention.  Showcasing your green projects through video on your website enhances your care home’s standing within the community making your brand stand out as you grow.

Conclusion

Within the next decade Green Finance will have an increasing role to play supporting the sustainable business and operational side of a care home provision, promoting a steadfast care business meeting the demands of a demographically ageing population.

If you are thinking about extending your care home, a refurbishment project, refinance or acquisition, speak to the experts at Chandler & Co. with nearly 30 years of experience sourcing specialist commercial finance supporting your care home for the long term.