Westpac chief executive Peter King says the bank will work with customers to set clear targets to transition the Australian economy to net zero.
The Sydney-based bank has followed National Australia Bank in making more concrete commitments around its financed emissions to the oil and gas sector, after NAB put in place a $US2.4 billion cap on lending.Westpac chief executive Peter King said releasing “clear markers” for what the bank will finance would help customers making the transition.
“Across Australia, we now have stronger alignment and momentum on climate action in all states, and I am optimistic that great progress will be achieved with governments, industry, business and the community all working together,” Mr King said. Westpac said on Wednesday it had joined the United Nations’ Net Zero Banking Alliance, pledging to reduce its scope 1, 2 and 3 absolute financed emissions in oil and gas by 23 per cent by 2030, compared with 2021.
Westpac will give its existing oil and gas customers until 2025 to put in place “credible” transition plansThe bank also defined the emissions intensity for power generation, saying 79 per cent of its lending to the sector was directed at renewable energy. Westpac included the hard to abate cement production industry in its first round of targets, due to the emissions intensity of the manufacturing process.
“Our target is designed to allow financing for the sector to continue while the sector transitions to new technologies to reduce the release of carbon dioxide in the manufacturing process,” Westpac said.is a Senior Financial Services Reporter with The Australian Financial Review
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