It is a classic story of vision and ingenuity meeting environmental necessity – an electric motorbike, built not just to operate sustainably but to leave virtually no impact on the planet even at the end of the bike's life.
UBCO, the Tauranga manufacturer of the 2X2 bikes which are turning heads (and attracting orders – in the US, Australia and Europe) is New Zealand's first motor vehicle production company to mass-produce vehicles for an international market.
The 2X2 work bike (an off-roader) and the 2X2 adventure bike (designed for on-road and off-road) are two-wheel-drive, lightweight, silent and capable of all commuting needs (120km on a full charge) as well as the off-roading joys that those noisy, polluting motorcycles have given riders for decades. They've attracted global attention – not just for their zero-emissions ability to help combat climate change but also because the whole bike, even the battery, is recyclable.
Most of the first models were used off-road, for heavy duty work in agriculture, tourism and conservation – a testing ground UBCO say gave rise to "the toughest utility vehicle on the planet".
But there was another step between UBCO's originators, Daryl Neal and Ant Clyde, recognising the need for a planet-friendly vehicle of this type in 2014 and the growth of the company (from 20 to 100 employees, 4000 riders and with its first big order received this year for 1500 motorbikes).
That step involved, of course, money – and a bank. UBCO has had investment aplenty in recent years but Kiwibank got into the UBCO saddle in 2015 at a partnership investment evening, a night Nick Hosking, Kiwibank's commercial growth manager, remembers well: "I was intrigued. They were taking this amazing sustainable product to the world."
Hosking's deep knowledge of UBCO enabled him to develop a specialised banking solution.
"We looked at the ultimate success factor, what did they really need to come to market?" A trade loan facility enabled UBCO to finance its day-to-day costs, such as inventory, freeing up investor capex to focus on growth.
"It's about mitigating a lot of the painful, day-to-day stuff," says Hosking, "to let them get on with growing."
He saw the potential in UBCO from the start, not only because he shares their strong sustainability values, but also because he could see the immediate use of a nimble, environmentally friendly machine that didn't break down.
He understood the motorbike's attraction for adventure users and businesses, such as pizza delivery companies, and he liked the fact that UBCO's packaging is fully biodegradable, with the company working to eliminate plastic from the seat and ensure every part of the grunty bike is fully recyclable, including the battery.
One of those people is UBCO chief executive Katherine Sandford, who started as an investor, moved onto the board and is now leading the company. Kiwibank, she says, was the only bank interested in UBCO at the beginning.
Its approach stood out in a New Zealand business context that Sandford says could be more supportive of entrepreneurs and start-ups, as other countries are: "It's really been incredible. Nick is as invested in our success as we are, and you can really feel that when he spends time with us. Kiwibank has been a true partner and I think that is the difference we feel, that we're part of the same team. Through good times and bad times, they've always been there to support us.
"It has come down to people. It's rolling up the sleeves and working together on a proposal to get through the credit team. It's about personal relationships."
While other banks are now interested in the company, Sandford says UBCO counts Kiwibank's loyalty as a major reason to remain linked through its next steps. The relationship is so close, UBCO was involved as an example of leading sustainable businesses in Kiwibank's recent brand re-launch, along with other leaders like Dawn Aerospace and Allbirds.
Kiwibank Head of Sustainable Finance, Tom Williams, says UBCO is a good example of Kiwibank's support of businesses making a positive impact: "Sustainability is a growing concern for all of us and a major component of the resilience and long-term performance of organisations."
He says research shows Kiwi businesses need to consider and practise to be long lived. "Licence to operate is important. If you don't do this you're falling behind."
As a leader in the sector, however, Kiwibank is committed to mainstreaming sustainable finance and supporting small to medium businesses on their sustainability journey. For example, to achieve objectives to deliver $100m in sustainable finance support by 2023, in September the bank introduced sustainable business loans with preferential interest rates for business banking customers. It has also enabled qualifying business customers to easily calculate their carbon footprint through its partnership with sustainability fintech Cogo.
And the bank aims to provide $2 billion in sustainable finance support too small to medium businesses by 2030.
Kiwibank's partnership with UBCO is an example of how Kiwi businesses partnering with Kiwibank are at the forefront of innovation and sustainability, Williams says. "They're inspiring other Kiwi businesses to follow in their footsteps. As leaders in their respective fields, they are making a positive impact on Aotearoa and the world. This truly is business for better."
Watch the first episode in Kiwbank's series, Business for Better, and learn more about how UBCO are leading the way in how they do business for the better.