ANZ has begun work to encourage and support 100 of our highest-emitting business customers to identify their climate change risks, create transition plans and report publicly on their progress.
Why do we think this is important? It is fast becoming a norm for companies to publicly outline their low-carbon transition plans so investors, regulators and other stakeholders can assess their climate risk management. We’re doing our part by improving our carbon disclosures, and signalling that we expect our customers to do the same over time - of course many already are.
We understand our customers have different starting points and strategies to support the transition. In general, a robust plan will incorporate three key elements:
- Governance: A clear framework outlining Board and senior management oversight of climate change risks and opportunities.
- Targets and policies: Action to reduce greenhouse gas emissions, including public targets to support government policies up to 2030 in their key markets of operation or company policies or statements setting out long-term goals.
- Disclosure: Public reporting aligned with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures recommendations (TCFD), or comparable framework(s).
What has ANZ learned already?
Engagement with our energy customers is well-progressed already, especially those with thermal coal operations. A number of energy customers, such as power generators have already disclosed robust plans, whereas others have signalled an intention to improve disclosure. We have also started to engage with customers in other key sectors, and expect to meet with over 50 customers this year.
The plans will vary depending on the sector, but some sector specific measures expected are:
- transportation customers moving towards more fuel-efficient vehicle fleets or other measures that will reduce their ‘fleet’ carbon emissions;
- property developers or retailers reducing building energy consumption and refrigerant-based emissions using best available, commercially viable technologies; and
- food, beverage and agriculture customers switching to practices that lower energy use or non-energy emissions such as reforestation or energy efficient farm equipment.
Responses from our top emitting customers will be used to develop a model for what we might expect from customers with less developed plans (in our broader customer base).
We will continue to report on our own progress and look forward to sharing this with our customers and other stakeholders.