As no two businesses are the same, it’s vital that banks understand the individual needs of their clients and guide them on the path to sustainability and profitability.
Kiwibank exemplifies this in their Business for Better series featured on TVNZ’s Sunday programme. Each episode follows Kiwi businesses as they reflect on their successes and steps towards growth, as well as the benefits gained through Kiwbank’s knowledge and expertise.
The series showcases how sustainable finance considerations are more than just a perk - they are key factors for business profitability beyond industry standard, growth and financing. In this story, Kiwibank’s Head of Sustainable Finance Tom Williams visits Sequal, a locally owned sawmill in Kawerau whose innovative, people-oriented and environmentally conscious qualities embody smart financing and sustainable thinking.
Growing a sustainable business relationship
A client of theirs for three years, Williams says Kiwibank has built an “amazing” relationship with Sequal and developed an understanding of their unique needs, including a custom-built trade finance facility.
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“Compared to other timber mills, they are really invested in technology,” he says. “Sequal have designed technology themselves to get the best cuts out of a log that are better for customers, and better for the environment too.”
Williams says Kiwibank looks for businesses like Sequal who “understand that performance and purpose go hand-in-hand”.
“Those businesses that really thrive understand that they’re not just a place people turn up to to work. They deliver to the local economy and invest in their community.
“They don’t just try and deliver a product - they’re very much invested in their people, and they recognise that without people their business would fail.”
In an industry where only 40% of timber is produced by local businesses, Williams says Kiwibank goes a step further to ensure companies like Sequal can thrive.
“It’s about making sure we’re creating more higher value goods and services in New Zealand. We have a lot of forests [and] we’ve done forestry for a long time, but we need to get smarter with how we do it.”
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Financially sustainable woodcutting
For Sequal, the philosophy is “grow by giving”.
Executive Director David Turner says New Zealand has an “obligation” to process our raw materials and deliver valuable products to the world.
“By doing so, you create an opportunity for people to be valuable,” he says. “Focus on the purpose drives the bottom line, focus on the bottom line doesn’t drive the purpose.”
With over 100 staff, the mill is one of the largest employers in the Bay of Plenty town, most team members being Māori.
What makes Sequal even more unique is its in-house technology to tailor-cut timber for customers, and utilise each log as much as possible.
“We’re cutting what customers want,” Turner says, “that’s our point of difference.”
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Even with fewer offcuts, Turner says the waste created finds a new purpose.
“Our wood chip goes to New Zealand’s leading sustainable packaging manufacturer, and our sawdust is all used for the creation of wood pellets, a substitute for coal.”
The sawmill has grown 100% in the last decade and, with Kiwibank’s support, it hopes to double in size in the next three years.
Looking to the future
Kiwibank says it looks forward to helping Sequal grow further, as well as other Kiwi businesses that have a positive impact on employees, communities and the environment.
Williams says Kiwibank wants to continue forming strong bonds with businesses who give back and walk their own path towards a sustainable and profitable future.
“Who you bank with matters,” Williams says. “If you’re not clear on what your bank values, you might actually be funding things your values don’t align with.
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"It's that balance of performance and purpose that really makes a business set to succeed, not just now but in the long term.”
“It’s comforting to see more and more businesses today looking beyond just their bottom line and thinking more about the bigger picture,” Williams says. “At Kiwibank, we can customise our business banking facilities, we have an amazing team of people, and we want to do more for businesses.
“We have a huge appetite to grow and to fund businesses here in New Zealand, and the capability to do it.”
This content was sponsored by Kiwibank. Learn more about how Sequal are leading the way in how they do business for better
Watch Kiwibank’s Business for Better on TVNZ’s Sunday at 7.30pm on TVNZ1, streaming on TVNZ+.
