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ANZ's new climate policy will change how the bank finances
thermal coal companies.
(ABC News: Brendan Esposito) |
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Key Points
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Under the 10-year strategy, ANZ has committed to stop directly financing any new coal-fired power plans or thermal coal mines including expansions by 2030.
It will also "wind down" existing direct lending to coal-fired plants and thermal coal, and help existing customers with more than 50 per cent exposure to thermal coal create diversification strategies by 2025.
ANZ group executive Mark Whelan told investors via its blog Bluenotes that the new approach committed the bank to "taking strong action to support the Paris Agreement".
The big four bank has pledged to no longer provide services to any new business that makes more than 10 per cent of its revenue from thermal coal.
The bank also made changes to how it would finance the construction of large-scale office buildings, saying loans would only be provided if the buildings were highly energy efficient and had a 5-star energy rating.
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The carbon emitted by Australians is far above the global
sustainable average. (Reuters: Jason Lee) |
Activist group Market Forces said in a statement ANZ's plan to tackle climate change meant "no major Australian bank or insurer is willing to back thermal coal beyond 2030, except for NAB".
"However, the bank's policies remain woefully inconsistent with the Paris Agreement, allowing it to fund companies which continue to expand the fossil fuel industry, such as those exploring and exploiting new oil or gas fields," the statement said.
Market Forces criticised ANZ's plan for coming five years after the Paris Climate Agreement: "ANZ has given coal companies a further five year window to plan business diversification."
Research coordinator for Market Forces, Jack Bertolus, said the policy was "underwhelming".
He said ANZ allowing customers with more than 50 per cent of operations linked to thermal coal another five years to diversify gave "highly polluting companies another five-year free pass to continue with business as usual".
"It barely even brings ANZ into line with announcements made by the other big four banks on thermal coal," he said.
The Australian Conservation Foundation (ACF) also said ANZ had taken "baby steps on climate".
The group acknowledged the bank's "positive steps away from financing thermal coal" but said the withdrawal from coal was "too slow".
"The crippling drought and bushfires Australians endured over the last 12 months are a stark reminder that global heating is hitting our nation and economy hard, and the clock is ticking on climate action," said ACF's chief executive Kelly O'Shanassy.
"Financing coal, gas and oil is fuelling climate disasters; Australia's banks are responsible and must be accountable."
Mr O'Shanassy criticised the bank for remaining "firmly invested in companies that it acknowledges have material exposures to thermal coal".
Deputy Prime Minister Michael McCormack released a statement on Thursday condemning ANZ's policy for being "sheer virtue-signalling".
Mr McCormack said banks should be focused on "supporting our agricultural producers, not adding an extra layer of administration".
"Imposing largely Euro-centric standards to satisfy shareholder activists while our nation recovers from a global pandemic is grossly unfair," he said.
ANZ chief executive Shayne Elliott told investors via Bluenotes on Thursday afternoon the bank was not shifting support away from farmers.
"ANZ's climate change statement is focused on the top 100 carbon emitters, and will have no impact on the bank's farmgate lending practices," Mr Elliott said.
He said the policy was about the bank's "major agribusiness customers" becoming more energy efficient and was "not about family farms".
ANZ another company ahead of Australian Government on climate change
The new policy adds ANZ to a growing number of businesses that are ahead of the Australian Government when it comes to commitments to stop the effects of climate change.
ANZ's policy was released after a number of other countries announced moves towards carbon neutrality.
Japanese Prime Minister Yoshihide Suga, who took office in September, said earlier this week the country would become carbon neutral by 2050.
"Responding to climate change is no longer a constraint on economic growth," Mr Suga said.
South Korea's President Moon Jae-in quickly followed suit, declaring on Wednesday that the country would achieve net zero carbon emissions by 2050.
China said in September it would be carbon neutral by 2060.
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UK Prime Minister Boris Johnson has told Prime Minister Scott
Morrison to increase action on climate change.(Reuters: Toby Melville) |
The UK has a policy of achieving net zero carbon emissions by 2050, but Australia has only set targets until 2030.
On Wednesday, Mr Morrison rejected the input from the British PM and said Australia would set its own policies.
"We'll set them. Our policies won't be set in the United Kingdom, they won't be set in Brussels, they won't be set in any part of the world other than here," Mr Morrison said.
"I'm very aware of the many views that are held around the world, but I tell you what, our policies will be set here in Australia."
Mr Morrison said any decisions on climate change were "sovereign decisions".
"One thing the British Prime Minister and I agree on is that achieving emissions reductions shouldn't come at the cost of jobs in Australia or the UK. It shouldn't come at the cost of higher prices for the daily things that our citizens depend on."
Links
- Nationals call for ANZ boycott after bank's push for net zero emissions
- Overwhelming majority believe Australia is already experiencing climate change
- Federal ministers urge boycott of major bank proposing climate risk in lending decisions
- Financial system faces 'considerable' risk if climate change not tackled: RBA
- It’s Been A Landmark Year For Investor Action On Climate Change
- Deutsche Bank Says It Will No Longer Invest In Fracking Or Arctic Oil As Banks Turn Away From Fossil Fuels
- (AU) Australian Banks ‘Undermining Paris Agreement’ With $7bn In Fossil Fuel Loans
- Threat From Climate Change To Financial Stability Bigger Than Covid-19
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