Environmental performance

Why is this important?

All organisations face challenges as they seek to address climate change, improve operational efficiency and use resources and natural capital more efficiently and sustainably.

Our environmental targets, assurance and certifications are helping us face these challenges with confidence.

What do we do?

Our environmental performance targets align to our Environmental Agenda focus areas and help us measure progress towards achieving the Group's environmental objectives. 2019 is the fourth year of reporting for our 2020/2025 environmental targets for our global operations. To date, all of our environmental sustainability performance targets are on track to be achieved.

You can find more information about our 2020/2025 environmental performance targets and our 2019 environmental performance in our Sustainability Report (PDF, 2MB) and Sustainability Data Pack (XSLX, 866KB).

Performance against these targets is presented in the tables below:

Current Environmental Performance Targets

1. Science-based target does not include data centres

2. Target applies to all Australian data centres only. Actual PUE figure reported (not percentage reduction).

As we come to the end of our 2020 environmental target period we have set new targets for 2020-2025. This includes increasing our 2025 science-based GHG emissions (tCO₂-e) reduction target from 21% to 51% against a restated 2015 baseline level. Our new targets are detailed below and we will report against both sets of targets for the 2020 financial year.

New Targets: Environmental Performance Targets

1. The 2015 baseline for the Group's science-based emissions reduction target was restated in 2020 to align with a well below 1.5°C scenario under the Paris Agreement.

Our assurances and certifications

We believe independent assurance and third party validation of our performance is important because it provides management and stakeholders with confidence in our reported performance data and information.

We undertake a range of annual assurance and third party certification processes to give our stakeholders confidence in the credibility of our approach and data reported.

Regulatory reporting

NAB Group is subject to a range of environmental regulation, including reporting requirements. The key regulatory requirements are as follows:

• the Australian National Greenhouse and Energy Reporting Act 2007 (Cth) (NGER Act);
• the Australian National Environment Protection (National Pollutant Inventory) Measure (NPI NEPM);
• the United Kingdom's Carbon Reduction Commitment Energy Efficiency (CRC EE) Scheme legislation;
• the UK Energy Savings Opportunities Scheme (ESOS), which was introduced by the ESOS Regulations 2014.

Further information on these regulatory requirements can be found in our Annual Financial Report, in the social and environmental section of the Report of the Directors.

Assurance of our carbon neutrality

KPMG currently conducts limited assurance procedures over our carbon inventory in Australia, United Kingdom, New Zealand, Asia and the United States, and the progress we are making against our science based targets.

• Read more about our carbon neutral commitment and how we calculate our carbon inventory.
• Download KPMG’s most recent Carbon Neutral assurance report (PDF, 165KB).

The component of our Australian carbon inventory that must be reported under the National Greenhouse and Energy Reporting Act has been subject to reasonable assurance by KPMG.

• Download KPMG’s most recent NGER assurance report (PDF, 183KB)

KPMG has also conducted limited assurance over the following carbon risk disclosure information – (i) renewable energy disclosure; (ii) project finance sector segmentation and (iii) our environmental financing disclosure.

• Download KPMGs carbon risk disclosure limited assurance report (PDF, 166KB).

Third party certification for our carbon neutrality

In Australia, we have achieved certification under the National Carbon Offset Standard (NCOS) Carbon Neutral Program, for the emissions inventory we are monitoring and reporting for our Australian operations. We achieved our initial certification in December 2010 and re-certify our carbon neutrality annually. In 2016, we recommitted to be a part of the NCOS Carbon Neutral Program for a further five years.

You will find our latest annual NCOS public disclosure summary in the environmental section of the resource library.

Download KPMG's NCOS assurance report (PDF, 97KB).

Energy efficiency and renewable energy

We remain committed to reducing our environmental impact and we’ve undertaken a range of energy efficiency and renewable energy initiatives including:

• Implementing improvements to the way we heat, cool and light our buildings
• Installing energy efficient ATM's across BNZ
• Installing solar panels on 75 of our Australian buildings since 2014 (including 2,200 solar panels on one of our data centres), with a total installed capacity of 2,055 kW as at 30 September 2019.

Energy Efficiency Opportunities Reports

• 2012 Energy Efficiency Opportunities Report (PDF, 320KB)
• 2011 Energy Efficiency Opportunities Report (PDF, 1.4MB)
• 2010 Energy Efficiency Opportunities Report (PDF, 1MB)
• 2009 Energy Efficiency Opportunities Report (PDF, 1.3MB)