The effects of climate change are becoming increasingly glaring – from devastating floods to the snow we recently witnessed in KwaZulu Natal during spring. These developments highlight the urgent need to think about the energy transition across all sectors, including home financing.
At Standard Bank, we recognize the importance of this shift and are committed to achieving net zero across all newly built facilities in our direct operations by 2030. Our ambitions extend further with a goal to reach net zero in all lending and investment activities by 2050. As South Africa’s largest home loan provider, we realise that we have the power and responsibility to reduce more than just our own emissions.
Many home loans issued today will extend well past 2050, making it essential that these loans support green initiatives. However, this raises a key question: how do we facilitate this transition without leaving our customers behind? Affordability remains a significant barrier to adopting green energy solutions in South Africa. With more than 30 million people living below the upper-bound poverty line of R1,417 per month, many households face the difficult choice between immediate survival and investing in a sustainable future. This is especially pressing for clients in the affordable housing market.
That said, it doesn’t mean we’re at a dead end. We can play a pivotal role in enhancing affordability by helping customers manage their energy costs. Energy expenses, particularly electricity tariffs, have skyrocketed – averaging a 9.5% increase per year over the past decade. These rising costs are a major contributor to household inflation.
How do we plan to change this? We can help our customers reduce their energy costs by offering innovative energy solutions. By providing access to reliable energy alternatives, we can give them both stability and savings. For those who can generate excess power, we could explore partnerships that enable them to sell surplus energy back to the grid, a possibility now available in some municipalities.
It’s crucial to recognise that turning homes powered by traditional energy sources to green alternatives isn’t just about aesthetics or having sleek solar panels on rooftops.
The current trajectory of energy costs could directly impact households’ ability to meet their bond repayments. Eskom’s electricity tariffs have risen by 927% since 2007, and further steep hikes are likely, with the utility having requested hikes of between 36% and 44% for its 2025/26 financial year.
This presents a catch-22: while affordability is a pressing challenge, failing to assist customers in transitioning to greener homes could trap them in a cycle of increasing costs and reduced financial stability. The shift to greener homes isn’t just a nice-to-have, it’s essential – not just for environmental reasons, but to safeguard the financial well-being of households. At Standard Bank, we aim to play a bigger role in improving the financial health of households, positioning ourselves as more than just custodians of their money. Our commitment to wealth management includes helping households implement strategies to keep their running costs sustainable.
This also aligns with the Paris Agreement, which encourages banks to adopt practices that mitigate climate change while ensuring our customers can thrive in a more sustainable future.
Moreover, making homes greener is a way to help our customers build more equity in their properties. We’ve long known that buyers increasingly seek homes with on-site power generation, and our data confirms this trend.
To ensure homeownership remains a valuable and appreciating asset, we must find ways to make homes more climate-resilient and cost-efficient. Standard Bank is already piloting several green financing options to help turn this vision into reality. Together, we can navigate the complexities of this transition, ensuring it benefits both our customers and the environment.
By Clive Spitz, Head of Climate Solutioning at Standard Bank Personal and Private Banking
Innocent Ghost
Ryan Bacher originally set out to develop and sell technology that would allow retailers to transition to online. But at the time, no other retailers were looking to transition, so they decided to showcase how profitable the technology could be and launched NetFlorist. \”Our plan was to run the site for one day to prove that we could do it. And then we got R30 000 worth of orders. That was the equivalent of a whole month\’s revenue at a flower shop,\” explains Bacher. 19 years later, the delivery giant almost single-handily defined and established ecommerce in South Africa. NetFlorist now operates in major countries and cities around the world, offering its game-changing same-day delivery.