We know that managing the environment well is good for business. Our economy and societal wellbeing depends on a healthy planet. So we’re working to help our customers understand environmental risks and providing products and services to make it easier for our customers reduce their environmental impacts whilst improving their long-term profitability.
We are providing products and services that enable our customers to make long-term decisions that are good for the environment and their bottom line. We became an inaugural signatory to the Natural Capital Declaration – an initiative of the Natural Capital Finance Alliance – in 2011 and we are integrating consideration of environmental impacts and dependencies into our day-to-day risk management practices and decision-making.
The transition to a low carbon, resource-efficient economy in which our natural assets are valued and managed sustainably will require the scaling-up of private-sector investment in clean technology applications and systems for natural capital management around the world, both in developed and developing economies. From power generation and energy efficiency measures to transport infrastructure and smart agricultural practices, significant investment in existing and new technologies will be necessary.
Mitigating climate change requires changing the way we use energy – and how we invest in energy development. Renewable energy and energy efficiency technologies promise significant potential for reducing greenhouse gas emissions and protecting the environment. Alongside measures to reduce the demand for emissions-intensive goods and services, significant stock of public and private infrastructure will also need to be replaced or modified. This provides an opportunity to invest in the technology, physical plant and equipment and infrastructure that will deliver emissions reduction outcomes.
We’re proud to have been the first bank in the world to issue a Climate Bonds Standard certified green bond1. The Climate Bonds Standard is a benchmark that assists investors in prioritising investments that finance climate change solutions.
For more information about NAB’s Green and SRI bonds refer here.
In the 2019 financial year, the Group reviewed its Climate Change Strategy and increased its environmental finance commitment to support green infrastructure, capital markets and asset finance from $20 billion to $35 billion (taking the Group’s total environmental finance commitment from $55 billion to $70 billion by 2025).
In 2021, our progress against this commitment (measured as total cumulative amount of new environmental finance from 1 October 2015 – 30 September 2021) is $56.3 billion2. This comprises:
$31.7 billion progress towards our 2025 $35 billion target to support green infrastructure, capital markets and asset finance; and
$24.6 billion progress towards our 2025 $35 billion in new mortgage lending flow for 6 Star residential housing in Australia (new dwellings and significant renovations).
You can read more about our progress against our $70 billion commitment in our Annual Review(PDF, 2MB).
We have dedicated teams that provide products and services to our customers to help them address environmental challenges or make the most of environmental opportunities.
Important information
1. Refer to Climate Bonds Initiative.
2. A summary of the methodology used to calculate our environmental financing data can be found here.
3. Large-scale infrastructure includes national critical projects such as Public Private Partnerships in areas of education, health, social housing, justice, water and rail.
4. Energy projects include traditional power projects, energy distribution and transmission. Renewable projects are a key focus for the team and include such sectors as wind, solar and geothermal power.
5. Natural resource projects are arranged across selected mining and mining-related infrastructure.
We're committed to understanding and managing the impacts and dependencies of our business on the environment.
The impacts of climate change and climate-related policy are having a growing effect on our business, our customers and the communities in which we operate. That's why we're taking action.
We’re integrating natural capital considerations into our day-to-day decision making and risk assessment processes.
Our environmental targets, assurance and certifications help us operate more efficiently while addressing key environmental challenges.
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