How banks can help customers improve energy efficiency

Individual actions, collective impact 

The answer lies in both individual and collective change. Everyday habits significantly impact energy consumption. Simple changes, like turning your thermostat down by 2 degrees, could save 463 kg CO2e and £222 per year. While bigger changes, like installing a heat pump in your home, could save you 1666 kg CO2e and £206 per year. With homes currently accounting for 26% of the UK’s carbon emissions, there is a clear call to action for people to make these sustainable switches. While it may not seem significant, when multiplied across populations, seemingly small actions can have a huge collective impact. 

Barriers to action 

However, a lack of awareness about the financial and environmental benefits leads to inaction. Furthermore, when it comes to making bigger changes, the upfront costs act as a barrier. Many also struggle with accessing finance as not all homeowners have the necessary credit or financial means to secure loans for home improvements. 

The complexity of the subject adds another layer of difficulty. For many, understanding the technical aspects and navigating the landscape of available retrofit options can be overwhelming, preventing people from implementing energy-saving measures. 

The role of financial institutions 

By helping customers understand the carbon footprint of their energy use and educating customers about the long-term benefits of energy efficiency, banks can drive meaningful change. 

Offering green finance options and loans for home improvements, along with incentivising energy-efficient properties with favourable mortgage terms, are just a few ways they can contribute.

How Cogo can help 

We make it easier for banking customers to understand their energy use by providing clear, relevant information on their energy footprint. Then, we recommend personalised climate actions, turning what could be an overwhelming set of options into simple steps for behaviour change.

We also provide banks with useful insights, so they can promote embedded financial products, like home energy retrofits, green mortgages and electric vehicle loans, that support customers at the point of need. 

In our commitment to improving the customer experience, we’re also exploring partnerships to integrate additional data like smart metre, EPC and temperature data into the banking journey. Giving advanced hyper-personalisation of energy and climate actions with cost savings. 

This additional data allows banks to have a clearer understanding of their customers, the cost savings that have been made and the impact they will make over the term of a loan. It also allows them to use this data as part of their climate reporting and disclosure process. 

Final thoughts 

Integrating carbon tracking helps banks support customers in improving energy efficiency, which not only meets government emissions targets but also builds energy literacy. This targeted approach can mobilise customers to take meaningful climate action, driving the conversion of green finance products and growing bank revenues. Additionally, it enhances customer loyalty and retention and increases partner traffic, aligning environmental goals with business growth.

Connect with the Cogo team today and let's pave the way to a more sustainable future together.