National Australia Bank to become carbon neutral by 2010 - 14 March 2007

Wednesday, 14 March 2007

National Australia Bank Group intends to become carbon neutral by 30 September 2010, Mr John Stewart, Group Chief Executive Officer, announced today.

As a carbon neutral company NAB will reduce the greenhouse gas impact of its operations to zero, by improving energy efficiency and use across its international operations and purchasing offset credits where emissions can't be avoided.

"Global warming is clearly one of the most concerning issues of our time. Across the world people are becoming more and more engaged with climate change, and there is real momentum for all of us to reduce our impact, both at home and at work," Mr Stewart said.

"It's imperative that corporations like NAB are at the vanguard of that movement, and that we work together to make a difference for the communities we're part of", he said.

"We'll identify a range of things we can do in each of the geographies that National Australia Bank Group has a footprint in - Australia, New Zealand, the United Kingdom and Asia - and they'll be tailored to suit that particular environment. We want to make sure we do the most appropriate thing in the most appropriate place."

nab Australia for example, which is responsible for more than 90% of National Australia Bank Group's total greenhouse gas emissions, has identified a number of major initiatives to help achieve the 30 September 2010 target.

"nab Australia is committed to reducing the impact of our operations on the environment, and we'll be taking steps to improve our efficiency across the country," said Mr Ahmed Fahour, CEO Australia.

"Any emissions that we can't reduce or eliminate completely will be offset via offset credit purchases", he said.

Mr Fahour outlined a series of initiatives including:

• Undertaking energy efficiency assessments and reduce energy use in offices, 790 branches and 158 business banking centres, while also purchasing up to 10% of green energy.
• Delivering behavioural change to reduce the amount of energy NAB uses Australia-wide. nab has set an internal target to reduce greenhouse gas emissions by 20%.
• Purchasing hybrid vehicles for use in the nab fleet.
• Offsetting CO₂ emissions produced by vehicles and air travel by purchasing carbon offsets through an accredited Australian supplier.

"While the concept of carbon neutrality is relatively new, the changes required by this commitment will help us better understand the challenges of our customers and communities in the future," Mr Stewart said.

"We've listened to our people and our customers, and they've told us this is what they want. Today's announcement builds on a solid base of work that we have already undertaken, and this series of initiatives will continue over the coming three years to help the Group, our employees and our customers make a practical contribution to reducing the impact of climate change", he said.

Additional Information

Becoming carbon neutral
A growing number of companies around the world have set out to make their operations carbon neutral.  This means they have committed to programs that will cancel out the greenhouse impact of their operations.

While the detail varies, most companies generally undertake programs that:

• Reduce energy consumption
• Purchase green power
• Purchase carbon offsets for the balance of greenhouse gas emissions

NAB Group's journey to become carbon neutral
To date, a greenhouse emissions inventory, which covers both direct and indirect emissions, has been prepared consistent with the principles of the World Resources Institute - Greenhouse Protocol.  Over time we will consider how to best incorporate aspects of additional indirect emissions.

Development of the greenhouse emissions inventory allowed NAB to detail a number of programs to become carbon neutral.  These include plans to reduce energy use in offices and branches and see green energy and hybrid vehicles purchased.  Carbon offsets will only be purchased where residual emissions can't be avoided.

These programs are forecast to make the NAB Group carbon neutral by 30 September 2010.

nab Australia's progress to date

nab first publicly disclosed its greenhouse footprint in 1998 when it signed up to the Australian Greenhouse Office's Greenhouse Challenge program.  Since then nab has focused on better understanding its environmental impact as well as reducing resource consumption. 

NAB has commenced a number of programs aimed at reducing energy use.  These programs include:

• Undertaking energy assessments at high energy use properties.  To date seven assessments have been completed.
• Revising nab design standards to incorporate ecologically sustainable design elements.
• Trialling voltage reduction devices at a large metropolitan office.
• A trial to link air conditioning and lighting controls to building security systems, regulating air conditioning times and ensuring lights were turned off at night.
• Working with an employee-led team to establish a Green Office Program.

NAB's greenhouse inventory was part of an external audit undertaken by URS Australia Pty Ltd, as part of the 2006 Corporate Social responsibility Report verification.

For further information contact:

Felicity Glennie-Holmes
Media Manager
T: +61 3 8641 3627
M: +61 412 673 038

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges