Financing the Future: How Lenders Can Support Clean Tech and ESG Equipment Investments
Environmental, social, and governance (ESG) priorities are reshaping capital investment decisions in every industry—including equipment finance. For lenders, the opportunity is twofold: support clients’ sustainability goals and open new, rapidly growing asset categories.
Here’s how modern lenders can tap into ESG-driven demand:
- Offer ESG-Linked Finance Products
Forward-looking lenders are rolling out lease and loan structures with sustainability KPIs. Rates may be tied to verified emissions reductions or use of certified green equipment.
Example: Offer lower interest rates for solar-powered or energy-efficient assets with verified carbon savings.
- Focus on Clean Tech Asset Classes
EV fleets, solar energy systems, battery storage, and electrified construction equipment are all in growing demand. Capturing this market requires specialized underwriting, asset knowledge, and often government incentive navigation.
Note: In the U.S., federal tax credits and local subsidies are accelerating adoption.
- Enable Circular Economy via Refurbished Equipment Financing
New equipment remains expensive and often delayed due to supply chain issues. Financing refurbished machinery gives clients flexibility while supporting sustainability goals. Used assets also offer strong residual recovery with the right digital asset tracking.
Digital support: Inventory management systems and remarketing portals are key to supporting this lifecycle.
- Embrace Lifecycle Financing
True ESG impact means managing the asset from acquisition to end-of-use. Lenders can differentiate by offering services like:
- Asset health monitoring
- Upgrade pathways
- Secondary market resale coordination
Added value: Visibility into an asset’s lifecycle drives smarter financing terms and builds client loyalty.
- Leverage Government Programs
In both Canada and the U.S., clean energy incentive programs are abundant. Help your clients tap into these faster by integrating eligibility checks and pre-configured compliance workflows in your origination platform.
