We recognise that environmental challenges such as climate change are major challenges affecting our economy and society.
The impacts of climate change and climate-related policy will have a growing impact on our business, our customers and the communities in which we operate, so we believe we have a key role to play in providing finance to assist the transition to a clean energy future. That’s why we continue to be the leading arranger by market share of project finance to the Australian renewable energy sector1. For more information read our Environmental agenda, objectives and strategy We have developed knowledge and understanding of carbon measurement and management through our commitment to carbon neutrality. We were the first Australian bank to achieve this goal. A long standing objective of our climate change strategy has been to learn by doing and then incorporate this knowledge into how we manage environmental, social and governance (ESG) risks and develop products and services to assist our customers. We recognise the growing demand for disclosure of information by financial institutions, including banks, to assist investors and other stakeholders to understand carbon risk in lending and investment portfolios.
We believe that in order to meet this need it is important to have reliable and standardised information on which to base carbon risk exposure reporting and agreed industry standards to account for and report on such exposures. At the current time:
- There is limited reliable or standardised information reported by clients on which we can base carbon risk exposure reporting; and
- Agreed industry standards for the accounting, reporting or disclosure of carbon risk exposure arising from finance, including financed emissions, are only now starting to be developed.
Consistent with our commitment to transparency and integrated reporting, we are committed to identifying, developing and implementing ways to improve disclosure on carbon risk exposure through collaboration with other financial institutions in Australia and internationally.
Furthermore, we are committed to:
- Expanding disclosure of carbon risk exposure in NAB Group’s Full Year results reporting, taking stakeholder input into account.
- Continuing our participation in the United Nations Environment Program Finance Initiative (UNEP FI) Greenhouse Gas Protocol Financed Emissions Initiative to assist the development of reliable and standardised reporting on carbon-related risk exposure for financial institutions.
- Collaborating with our Australian banking peers to pilot disclosure methodologies and approaches that can feed into UNEP FI Greenhouse Gas Protocol Financed Emissions Initiative to advance these processes in a timely manner.