Removing barriers to sustainable living

ABN AMRO aims to make sustainable living accessible to all its clients, and is supporting and inspiring them with a wide range of products and services. “Sustainable living is an important issue for many of our clients,” says Vincent van Dongen, Sustainability Product Owner with ABN AMRO Mortgages. “They all have their own specific questions like, how can I make my home more sustainable to save on energy? What should I tackle first? Am I eligible for a subsidy? These are all questions the bank can help them with. And we’re more than happy to help them find solutions that are right for their particular situation,” says Vincent.

The approach is closely aligned with ABN AMRO’s own sustainability targets, he continues: “Helping our clients become more sustainable is part of our strategy. Our main objective is that all the homes we finance are net-zero carbon by 2050. This is where we can really make a difference together with our clients, since mortgages make up the biggest share of our balance sheet.”

Sustainability potential

Sustainability always starts with understanding the options, Vincent says: “That’s why we show clients where the potential is for making their home more sustainable.” The Energie Bespaarcheck (Energy Savings Check) is a convenient online tool made available to the public by ABN AMRO free of charge. Based on calculations made by HomeQgo’s sustainability experts, the tool walks users through the process step by step, so that it quickly becomes clear what their individual options are. “The homeowner instantly sees what the best first step is,” says Vincent. “The tool shows you how much you’ll save by insulating the home, or whether it’s worth having a heat pump or solar panels installed.” On top of that, the Energie Bespaarcheck calculates the cost and potential returns, and even alerts users to the subsidies they may be eligible for. Implementing these energy measures need not be an obstacle either. In fact, HomeQgo works with reliable partners who can assist clients with purchasing and installation.

Discussing options

ABN AMRO’s Energy Savings Check was used over 33,500 times in 2023. Clients can elect to do the Energie Bespaarcheck on their own or together with a mortgage adviser. In the latter case, the adviser can also discuss financing options at that time. In 2017, ABN AMRO was the first to make such a tool available to the bank’s mortgage advisers, and many other banks have since adopted it as well. Vincent says, “We’re also making the Energie Bespaarcheck available to independent intermediaries. It’s important that they, too, be able to help their clients finance sustainability measures effectively – even if the client ultimately decides to go with a mortgage lender other than ABN AMRO.”

Sustainable Living Mortgage

To finance energy-saving measures, ABN AMRO has introduced its Duurzaam Wonen Hypotheek (Sustainable Living Mortgage). Vincent points out that by extending the maximum fixed term, the bank has better aligned the mortgage with its clients’ needs: “In February, we’re extending the maximum fixed term of the mortgage from fifteen to thirty years. That means energy-saving measures will be more affordable, since the client has more time to pay off the loan.” Plus the Duurzaam Wonen Hypotheek has no effect on interest rates on other portions of the mortgage. As Anton Bosch, Grid Owner with ABN AMRO Mortgages, points out, “ABN AMRO, including its mortgage subsidiary Florius, is one of the few market players that doesn’t levy this type of surcharge.”

Removing barriers

ABN AMRO’s aim is to remove all barriers to sustainability. “We want to make sustainability so appealing to homeowners that it’s basically a no-brainer,” Anton says. “The bank is committed to ensuring a just transition for all, meaning that anybody should be able to take part.” In that context, a new project has been launched under the working title Verrassend Pandbeheer (Surprising Property Management), which targets clients whose homes have a low energy rating (e.g. an E, F or G label). This group stands to gain much from making their homes more energy-efficient, as they often face energy poverty, where rising energy costs are becoming an ever-higher proportion of household expenditure. But they don’t always know their options. Making the home energy-efficient often has an enormous positive impact on these homeowners.

Anton says, “We’re happy to help clients by giving them advice and providing the right financing, including a potential interest rate reduction. New extended lending standards have also been introduced this year for homeowners looking to finance energy measures. But if we can’t help with an ABN AMRO mortgage, we’ll refer them elsewhere – to the Nationaal Warmtefonds (National Heat Fund), for instance, which offers loans on favourable terms to those in lower income brackets to take energy-saving measures. ABN AMRO aims to be a bank for everyone. That’s why it’s involved in a number of projects like the Dutch Banking Association’s pilot project Wijkgebonden Aanpak Energiearmoede (Neighbourhood-Based Approach to Energy Poverty), whose other partners include the Nationaal Warmtefonds and the municipalities of The Hague and Zwolle.

Climate risks

The bank also shares information on climate risks, Anton explains: “We can see from our data that some of our clients live in high-risk areas – parts of the country where we know there’s a greater chance of damage to foundations or flooding because of climate change. We see it as our responsibility to make sure current and future clients know what these climate risks entail.”

Inspiring clients

All this information on sustainability is meant to inspire clients and show them where new opportunities lie. Anton says, “Using our data, we can help the client see how they can drastically reduce their monthly energy costs by making a small investment from savings or equity.” Making a home more sustainable often means a better energy label, too, especially if it’s out of date, as is often the case. Anton explains, “Although lots of clients have taken energy measures, they haven’t necessarily thought to update their home’s energy label. Not everyone automatically thinks to apply for a new label after having solar panels installed, for example.”

But that’s the direction we need to be moving in, Vincent says: “ABN AMRO is running a promotion for clients who finance their sustainability measures through the bank, and will foot the bill for a new energy label. We already knew that buyers are likelier to choose a home with a favourable energy label, but the latest research shows that homes with a top-notch energy label also fetch a much higher purchase price. Plus ABN AMRO homeowners are eligible for a lower interest rate on their mortgage if their home has an A or B label. So it certainly pays more than ever for homeowners to update that energy label!”