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Bloomberg
Westpac Banking Corp will slash oil and gas as well as cement industry lending by 2030 as it joins an initiative to reduce emissions.
The lender will aim for a 23% reduction in scope one, two and three emissions by 2030 from firms involved in oil and gas exploration, extraction or drilling, Westpac told investors. It will also curtail lending to cement production firms, the bank said, adding to an earlier move to stop dealing with companies with more than 5% of their revenue coming directly from thermal coal mining.
The thermal coal policy is part of membership to the United Nations’ Net-Zero Banking Alliance and makes it the third of Australia’s largest four lenders to join the pledge after Commonwealth Bank of Australia and National Australia Bank Ltd. Australia & New Zealand Banking Group Ltd, meanwhile, has a later target of net zero emissions by 2050.
The commitments come as Australian banks have faced increased scrutiny from customers and the public for demurring on climate politics. In May, National Australia Bank’s Chief Executive Officer Ross McEwan and Commonwealth Bank’s CEO Matt Comyn were both confronted on stage at a banking conference in Sydney by a climate protester who accused them of not doing enough to cut fossil fuel funding.
“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,†Westpac CEO Peter King was quoted as saying in a statement.