Pepper Money will provide ongoing financial support to Ecologi to fund activities like tree planting and other carbon reducing efforts.
Pepper Money’s chief executive officer Laurence Morey (pictured) said: “We’ve realised we’re at a crucial point within the specialist lending sector where many lenders and brokers are coming to understand the environmental impact our industry has on our planet.
“We have an active role to play to change the way our industry is impacting our environment,” he added.
The lender has already reduced 174 tonnes of carbon dioxide and planted 2,316 trees as part of the partnership.
It has funded a biogas electricity plant in Thailand and fuel-efficient cooking stoves in Honduras.
According to the lender, the carbon reduction achieved is equivalent to 134 long haul flights or 5,222 metres squared of sea ice saved.
The lender does not currently offer green mortgage products, but is looking at it for the future.