Good intentions matter. But they don’t always translate into action. Sometimes, it takes a financial catalyst to bridge the gap.
In our recently released Impact Report we highlighted just some of the work that has been achieved with our Partners since we formed in 2019. These case studies speak to the growing momentum behind strengthening Aotearoa New Zealand’s climate, nature and economic resilience.
And as shared in our report, our Sustainable Agriculture Finance Initiative (SAFI) is just one example of how our development of practical tools to accelerate sustainable farming across Aotearoa is being utilised.
This work began in 2021 when we brought together major banks ANZ, ASB, BNZ, Westpac NZ and Rabobank alongside the Ministry for Primary Industries, with secretariat support from EY New Zealand.
The aim was clear: unlock capital, align with global frameworks, and support best-practice farming through a shared, sector-wide approach.
SAFI aims to support Kiwi farmers to improve environmental performance while meeting the evolving expectations of governments, markets and communities around sustainable production. As the name suggests, SAFI investments are intended to be safe for the environment, ethically sound, and resilient for future generations.
Importantly, SAFI also reflects emerging international frameworks and standards through the International Platform on Sustainable Finance (IPSF), ensuring that progress made in Aotearoa New Zealand is recognised and credible on the global stage. At the same time, it builds on the sustainability standards already in use by New Zealand growers and farmers.
In 2023, Circle Leading Partner, Westpac NZ introduced a Sustainable Farm Loan and the underlying Sustainable Farm Standard - a practical, auditable approach designed to support farmers to strengthen sustainability practices, build climate resilience, and recognise the essential role nature plays in productive farming systems.
Westpac NZ Managing Director of Institutional and Business Banking, Reuben Tucker, says SAFI played a critical role in enabling this progress:
“Our ability to move at pace was made possible by The Aotearoa Circle, which convened the Sustainable Agriculture Finance Initiative (SAFI) and published the SAFI Guidance in 2021. This guidance created the first shared framework and minimum requirements for on farm sustainability, which we translated into a practical, auditable, New Zealand specific standard. This enabled the development of both the Westpac Sustainable Farm Standard and the Westpac Sustainable Farm Loan.”
Just over two years on, the impact is clear - with strong uptake and measurable improvements across Westpac’s agribusiness portfolio.
Reuben continues; “Almost half of Westpac’s agri term lending is aligned to our Sustainable Farm Loan, which incentives customers to improve their on farm sustainability performance with a discounted interest rate. Audit data shows meaningful improvements in sustainability practices, water management, and climate resilience.
“In 2024, customers improved their sustainability progress scores by an average of 7%, with 10% achieving gains of more than 20% and some exceeding 40%,” he adds. “More recently, the first cohort has completed its two-year audits, and the vast majority passed with flying colours - demonstrating real progress and deep engagement with the programme.”
This is what impact looks like in practice - turning collaboration and shared frameworks into scalable action, and enabling farmers, financiers and partners to move together towards a more resilient, productive future for Aotearoa New Zealand.
