Keira Shepperson at the British Business Bank explores the Northern Powerhouse Investment Fund’s (NPIF) role in driving Northern businesses to achieve net zero targets. She discusses how bolstering credentials in this area strengthens business performance, making a company more attractive to both consumers and investors.
With a national drive to reach a decarbonised economy by 2050, three quarters of consumers expect organisations to enable them to be greener, with 83 per cent believing they should be doing more to be environmentally sustainable. For NPIF, this means investing in businesses which demonstrate that they are committed to a net zero transition and are looking to make responsible investments and partnerships.
A recent study revealed that whilst the vast majority of businesses have net zero targets in place, a lack of finance presents an uphill struggle, especially for smaller businesses. It is promising to see that 22 per cent of businesses are prepared to access external finance to support net zero actions in the next five years.
Recently surpassing £1 billion of direct and private sector co-investment, NPIF’s investment and support has accelerated investee businesses growth journeys and, in turn, supported them in achieving sustainability targets.
Cheshire-based Pura is an excellent example of this which, since securing NPIF funding, has firmly positioned itself in the US market with its eco-friendly baby wipes and nappy business. The £4.25 million round in February 2022 – including investment from NPIF – Maven Equity Finance – has skyrocketed Pura’s sustainable initiatives. It has secured crucial partnerships such as one with Asda through the creation of recycled carboard shelves (made from recycled nappies), as well as a partnership with NappiCycle – Europe’s only nappy recycling partner.
Reducing plastic remains a top priority on environmental agendas, whether this be through recycling initiatives like Pura, or creating plastic free products to begin with.
In May 2022, Green Bell Packaging secured £100,000 investment from NPIF – GC & River Microfinance. Green Bell Packaging focuses on plastic free alternatives, and created the first plant-based mailing bag to reach the UK market in 2020. With the investment, NPIF has supported Green Bell Packaging to expand its team to meet growing demand for environmental products, supporting the continued production of the sustainable alternative.
Also producing sustainable alternatives is Floks – a luxury, sustainable bedding manufacturer that raised £100,000 from NPIF – Mercia Debt Finance. From its Yorkshire base, the business used the investment to support the production of duvets, pillows and mattress toppers, all made from British wool and organic cotton. By using British sourced materials, not only does the business support the local economy, but it also reduces the need to outsource materials which can leave a trail of hefty carbon footprints.
This is only the beginning for NPIF, with the next phase of the fund launching next year. NPIF II will continue investing in businesses with ambitions to become more sustainable. Through this, NPIF II will continue driving economic growth across the entirety of the North and beyond, with an increased focus on environmental, social and governance factors which contribute towards wider, global net zero goals.
The NPIF project is supported financially by the EU using funding from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
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