‘Go woke go broke’ or just smart business

This is a special feature written by Steve Dixon, ESG specialist at ANZ.

I’ve been working with businesses on sustainability and climate change for over 20 years. My role at ANZ is to support business customers as they move towards more sustainable ways of working, by advising them on the many practical steps they can take. I’ve seen attitudes swing, as governments and economic cycles have changed and as the impacts of extreme weather from climate change hit home. One constant throughout has been that each time attitudes to business sustainability take a hit – however deep the recession or shifts in government policy – interest in sustainability consistently rebounds. Why is that?

I believe there are three fundamental reasons: the first is that we are all human. Most of us have empathy, and care about our fellow humans and the planet we live on. Surveys, such as the 2025 IAG-Ipsos survey, show that 70%+ of New Zealanders believe climate change is an important issue and, in the Kantar’s 2025 Better Futures report, 89% of New Zealanders expect businesses to take responsibility for their environmental and social impacts. Many of the business owners I meet tell me their first foray into sustainability came from their own personal motivation and that frequently their staff were supportive of such initiatives. Mostly, people want to do the right thing, understand that climate change is real, that changes are required and everyone has a role to play. We act where we can, where it makes sense, and where the benefits outweigh the costs. Incidentally, those benefits aren’t always monetary.

The second and perhaps most significant reason is that sustainability is often about efficiency – using less to do the same, or more. This could be energy, fuel, waste or any resource a business uses. Many businesses have cottoned on to the fact that being sustainable is not only good for the planet, but also for the bottom line.  This means that it is a win-win for businesses. The economic rationale for sustainability is compelling, and it’s clear that sustainability will remain a key business driver for the foreseeable future.

The best way to look at this is through a couple of real-life examples.

1. The solar phenomenon

According to the Electricity Authority Te Mana Hiko Commercial solar installations in New Zealand grew 53% in 2024, and residential solar grew 35%[1]. This is notable growth in a recession year! This is encouraging news for New Zealand’s renewable energy footprint and represents a smart, low-carbon way to power businesses. However, it’s likely most businesses are not installing solar to reduce their carbon footprint. Instead, they’re taking advantage of a 76% reduction in the cost of solar over the last 10 years[2] and the attractive payback periods of around five-six years.  With a return on investment of around 20% on systems that are typically guaranteed for 25 years, businesses can enjoy ‘free’ power for up to 20 years after the system itself has been paid off. This cheap power not only lowers business costs but also enables innovation and automation as the business case for investment in other new technologies is supported by cheaper power. The lesson here? If a business has significant daytime energy use (let’s put batteries aside in this use case), spare roof or ground space and hasn’t looked at solar in the last three years, then it’s worth getting a quote (or two). They may be surprised.

2. Electric everything

Electric motors are the most efficient ever invented. Where internal combustion engines (ICE) may give a maximum return from energy-into-movement of around 30%, an electric vehicle (EV) typically operates in the high 70% and up to 90% range. The difference is a combination of lost energy to heat (exploding fuel vapor under pressure inside your engine tends to do that!), and EV innovations such as regenerative braking.  All this leads to a much lower cost of operating an electric engine vs an ICE engine[3]. Electrine engines are also significantly less prone to breakdown[4]. One of my favourite examples is a client who operates quarries and landfills. They purchased an electric front-end loader with an upfront cost of 15% more than an ICE equivalent. After its first year in operation, they found significant cost savings (~$16,000 in diesel alone), lower maintenance costs and a happier crew due to the quiet and instantly available torque of the electric motor. Large battery electric vehicles may not be practical in every situation, but as battery prices continue to decline, businesses should look for more opportunities to incorporate EVs into their fleets, potentially delivering significant bottom-line benefits.

3. Finance

Most change costs money and many of the changes required to drive efficiencies and sustainability in businesses require capital. New Zealand businesses have access to a growing range of sustainable finance products, many of which offer discounted interest rates to support sustainability initiatives[5].  To support New Zealand businesses in their transition efforts, banks have publicly committed hundreds of millions of dollars for sustainability initiatives across a wide range of areas including renewable energy, EVs, on farm, waste reduction and green buildings.  One example is ANZ’s Business Green Loan. Homeowners have also benefited from these offerings – taking full advantage of low-interest rates, including special 1% financing for EVs and solar installations.  

Reduced financing costs can represent the final pillar of the increasingly compelling business case for sustainability initiatives. Together with risk mitigation, market expectations and building long-term resilience, they help explain why, whatever is happening in the wider economy or in government, action on sustainability endures and continues to grow.

[1] Electricity Authority

[2]  RMI The Cleantech Revolution, June 2024

[3]  Why buy an electric vehicle | Gen Less

[4]   EVs outperform ICE cars in major reliability study – Driven Car Guide

[5]  For amounts up to $3m repayable over 5 years.  See Business rates, fees and agreements | ANZ for current rates