Affordable Housing Commitment
NAB has committed $2 billion to affordable and specialist housing following the release of the Australian National Outlook 2019 report.
As a major lender to the housing sector, NAB is leveraging its deep understanding of the housing market, and its core competencies and expertise, to help to address this societal challenge profitably. One way in which we’re doing this is providing lending and banking services to not-for-profit community housing providers, including creating new funding models that will give them more capital to build more affordable homes.
We see partnerships as a key tool to maximise impact and NAB is proud to have joined the Constellation Project as an Alliance Member with the shared vision of ending homelessness in a generation.
As a founding signatory to the United Nations’ Collective Commitment to Climate Action and the only Australian bank to sign up, we have pledged to achieve net zero portfolio emissions by 2050. This means setting sector-based targets to decarbonise our lending portfolio and working with customers to support their transition plans.
NAB’s $70 billion environmental financing target recognises the commercial value from offering low-carbon products such as green mortgages, sustainability-linked corporate loans, clean energy project finance and green bonds. In 2019, we were proud to be recognised for our work in Clean Energy with a ‘Highly Commended’ shared value award.
NAB is committed to a long-term approach to support Australians before, during and after natural disasters through our flagship social impact program, NAB Ready Together.
NAB is Australia’s leading business bank, and in this capacity, we support the economic participation of Indigenous Australians to grow businesses and back their success.
We can make a positive impact at every level – from supporting Indigenous organisations and their beneficiaries, to start-ups and small businesses, through to large companies and investments.
As part of our commitment to Indigenous Australia we have developed an Indigenous Business Strategy targeting 4 key areas of focus:
- the development of a specialised Indigenous Banking Team
- a commitment to deepen our understanding of customers
- data and sector insights to inform our services
- culturally relevant and appropriate banker and customer collateral to support our bankers and communicate our service and offerings to Indigenous customers.
WHY IS THIS IMPORTANT?
Our financial success here at NAB depends upon the health and prosperity of our communities. We know that life is about more than money, so we try to help our customers and Australian businesses build a healthy, thriving society.
That’s why shared value is so important to us. The concept makes sense: we create innovative business solutions to address the challenges facing an ever-more connected and crowded planet. Shared Value is about positive and smarter action, searching for opportunities where others often just see problems.
That’s not to play down the immense problems we face – rising social and economic inequality, climate change, and environmental destruction to name just a few. There’s no single answer, no magic bullet. Lasting solutions need us all to work together, with governments, individuals, charities and business pooling resources and expertise to tackle some of our biggest social challenges.
WHAT WE DO
Many of society’s most pressing problems – affordable housing, alternative energy, natural disasters and sustainable agriculture to name four– have traditionally been the domain of governments and not-for-profits. But business, especially the finance sector, can play a huge role in driving forward a healthy future for all.
So we are looking at doing business in new and innovative ways. Shared value requires a long-term approach and NAB is committed to creating practical and sustainable solutions for our society. We want to help our customers build for the future and support our colleagues and the communities that we are a part of, to thrive. It’s the right thing to do and, ultimately, our success depends upon it.
HOW WE DO IT
Our shared value approach has already transformed parts of our business. In 2013, we radically overhauled our collections department, now called NAB Assist, resulting in global recognition through the shared value community.
We wanted to learn how to help our customers experiencing financial hardship faster and more effectively. The results have significantly improved the outcomes for customers in financial hardship and created substantial cost savings for us. Truly a win-win for us and our customers.
Our success with NAB Assist, and our role as a Founding Member of the Shared Value Project, has led us to develop several other shared value initiatives. Not only are these good for our customers – and for society – they’re good for business. Some examples include:
- Natural Capital strategy: We’re helping our agribusiness customers manage environmental risk such as water scarcity and soil degradation. How? We’re the only Australian bank to sign the Natural Capital Declaration. And we’re working to integrate natural capital considerations in our credit risk assessments.
- Resilience Investment Vehicle Pilot: Through cross-sector collaboration to understand how new or exiting infrastructure can be adapted to build community resilience to natural hazards under a changing climate.
- Clean Energy Finance: We’re developing a range of innovative financing solutions to better meet our customers’ needs. Our green bonds are one example.