Australia and New Zealand Banking Group (ANZ) [ANZ:AU] has allocated AUD100bn (USD67.63bn) for helping its customers reduce carbon emissions by 2030, as the lender seeks to speed up its net-zero transition, as reported by Reuters on November 25. ANZ stated that part of the allocations will be used for initiatives such as facilitating concessional loans for businesses to buy energy-efficient equipment and financing the construction of energy-saving large-scale office buildings. The bank also warned that it would reduce exposure to its largest carbon-emitting customers if they do not improve their emission transition plans by 2025. According to ANZ, 100 of its largest emitting customers contribute around 147m tons of direct (Scope 1) emissions from their Australia-based operations, accounting for 30% of the nation’s total emissions. 

Banks in Australia are facing increased pressure from investors to act on climate issues. Last October, a group of shareholders filed climate change resolutions with three of Australia’s Big Four banks, urging them to abide by their commitments to achieving net-zero emissions by 2050 and stop financing fossil fuels. As the fourth-largest lender in Australia, ANZ pledged to reduce its scope 1 and 2 greenhouse gas emissions by 85% by 2030. In addition, ANZ is on track to set 2030 targets for nine priority sectors, including oil and gas, to ensure at least 75% of its portfolio emissions are on a net zero pathway by the end of 2024. Similarly, Westpac Banking Corp [WBC:AU], one of Australia’s Big Four Banks, pledged earlier this year to reduce lending to coal, oil, and gas companies by almost a quarter by 2030.

Sources:

https://www.reuters.com/business/sustainable-business/anz-set-up-new-67-bln-target-help-customers-lower-emissions-2022-11-25/

https://bluenotes.anz.com/posts/2022/11/news-esg-low-carbon-reduction

https://www.reuters.com/business/sustainable-business/anz-westpac-investors-call-climate-risk-resolution-agms-2022-10-10/

https://www.reuters.com/business/sustainable-business/shareholders-table-resolutions-with-australias-banks-stop-fossil-fuel-financing-2021-10-06/