• A £17.5m investment by UK Green Investment Bank plc and Sustainable Development Capital Limited is UK’s largest ever fully-funded LED lighting retrofit project
• 90,000 new lights to be installed across Santander’s entire UK estate of 800 branches and 14 office buildings
• Project will generate energy savings of more than 50% and cut greenhouse gas emissions by more than 7,000 tonnes annually
UK Green Investment Bank plc (GIB) and Sustainable Development Capital Limited (SDCL) have today committed £17.5m to the UK’s largest ever fully-funded LED lighting retrofit programme.
The project will see more than 90,000 LED lamps installed in Santander’s 800 British branches. The installation, which is scheduled for completion by the end of this year, will also extend to the bank’s 14 UK office buildings.
The SDCL-managed UK Energy Efficiency Investments Fund, in which GIB is a cornerstone investor, is investing £8.4m in the project. A further £9.1m of private sector investment has been mobilised from a parallel fund, UK Energy Efficiency Investments 1A.
The project will cut greenhouse gas emissions by approximately 7,000 tonnes annually, the equivalent of removing 3,000 cars from the road, and generate energy savings of more than 50% across the Santander estate.
Santander, the UK’s fifth-biggest bank, says the improvements to the quality of its lighting will also enhance the customer experience.
Under the deal, SDCL will provide lighting services, designed and delivered by GE Lighting, for ten years in all branches.
Amber Rudd, Secretary of State for Energy and Climate Change, said:
We need research, innovation and serious private sector interest in clean energy technology to make real progress in transition to a global low carbon economy. The LED lighting retrofit project is a great example of steps that can be taken by companies to cut greenhouse gas emissions.
I want a global deal in Paris that will help to ensure our long-term economic security, creating a level playing field for businesses and clearing the path for private sector investment in clean technologies.
Chris Richold, Director, Santander, said:
Santander has been keen to demonstrate leadership in environmental sustainability and finance. There are fewer better ways to do so than to conduct and finance an energy efficiency upgrade throughout our entire UK estate. We look forward to working with SDCL and GE to help replicate similar solutions for our clients in the UK and around the world.
Ed Northam, Head of Investment Banking, UK Green Investment Bank, said:
The relatively simple action of installing LED lighting can have a big impact on efforts to reduce the cost of electricity and cut energy demand while creating a better environment for customers, clients and employees. Santander has recognised this, and should be congratulated for sending a signal to corporate UK that energy efficiency makes good business sense.
Jonathan Maxwell, Chief Executive, SDCL, said:
Santander is one of the largest banks in the world with an extensive estate across the UK, which is a large energy consumer. We are delighted to be investing in such an important project involving the implementation of world class energy efficient technology solutions from GE Lighting, the leading global company and also HVAC solutions from Daikin, the world’s largest air conditioning manufacturer.
About the project
Total GIB share of investment (via SDCL-managed UK Energy Efficiency Investments Fund): £8.4m
Total capital mobilised: £17.5m
Co-investors: UK Energy Efficiency Investments 1A
Expected completion: end 2015
Developer: GE Lighting
Notes to editors
About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With £3.8bn of funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.
SDCL is a specialist financial and investment advisory firm, headquartered in London and with offices in New York, Dublin, Hong Kong and Singapore. It was established to help governments, financial institutions and companies finance and invest in environmental and social infrastructure assets and services. SDCL’s advisory business is focused on facilitating the supply of clean infrastructure. Its investment business is focused on reducing demand for resources through energy efficiency.