ANZ accelerating its support for the transition to net zero emissions by 2050
We know we have a significant opportunity to assist customers as they invest in new capabilities, technologies and assets, provide lower emissions energy and power, or adapt to a less carbon intensive economy. We want to be the leading Australia and New Zealand-based bank in supporting our customers to transition to net zero by 2050.
Here’s what you need to know about how we’re accelerating our plans:
New sustainable solutions target
We’ve set a new $100 billion by 2030 sustainable solutions target to back our customers lowering their carbon emissions and achieving improved sustainability outcomes. To assist further, we will focus on financing corporate customers’ energy efficiency plans to reduce their energy costs.
Four new sectoral pathways
We’ve recently announced we will align our lending to four new sectoral pathways and targets in oil & gas, aluminium, cement and steel. These are in addition to our two existing pathways and targets for power generation and large-scale commercial property.
Making progress against our sectoral decarbonisation targets
We’re on track to set 2030 targets for nine priority sectors – with six in place by November 2022 – aimed at ensuring at least 75 per cent of our portfolio emissions are on a net zero pathway by end 2024.
Other priority sectors are well progressed. Our direct exposure to thermal coal mining has reduced by ~83 per cent since 2015; our exposure is now less than 0.02 per cent of Group exposure at default. And we are on track to exit all direct lending to thermal coal mining well ahead of our 2030 target.
Climate risk remains a focus
Climate risk is an emerging discipline compared with other traditional areas of risk – and our understanding of the impacts continues to evolve and mature.
We’ve refined our Risk Appetite Statements for our Group and Institutional business and included climate risk in lending criteria documents for a number of our carbon intensive portfolios. We have also implemented new processes for assessing customer vulnerability to climate risks for certain high-risk sectors.
Engaging constructively and transparently with our stakeholders
We have been discussing transition plans with 100 of our largest emitting business customers since 2018, and 61 per cent of these customers now have well developed or advanced transition plans (versus 42 per cent FY21).
For our largest emitting business customers who have not improved their transition plans by 2025, after significant engagement, we will reduce our exposure
Biodiversity is a focus area acknowledged in our Climate Change Commitment and as an emerging risk in our Annual Report
We have extended our customer engagement to encourage 100 of our largest emitting business customers to enhance their efforts to protect biodiversity by end 2024. We have also joined the Taskforce on Nature-related Financial Disclosures (TNFD) Forum to support its work.
Reporting our progress
We recently published our 2022 Climate-related Financial Disclosures report outlining our progress towards implementing our Climate Change Commitment and Environmental Sustainability Strategy.
You can also find more information here:
- Climate Change Roundtable Investor Presentation
- ANZ’s 2022 Financed Emissions Methodology
- ANZ's Climate Change Commitment
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