Taking action on climate change | Environment - NAB
Why climate action is important for us all
The success of our whole economy depends on the health of our climate.
Climate change presents both significant risks and opportunities for our customers and the economy. Our main role in climate action is through the finance, insights and support we provide. As a relationship-led bank, we are working with customers as they navigate their transition, while continuing to strengthen how we identify, assess and manage physical and transition risks across our operations and lending portfolio.
Our climate strategy
Our strategic priority is to support our customers as we move together to a resilient net zero economy. This is reflected in our 2030 interim targets, goals and $80 billion environmental finance ambition.
Our climate strategy leverages our strength as a relationship-led bank, with the aim to support customers to reduce their emissions and finance associated opportunities. Our climate initiatives span our Business and Private Banking, Personal Banking, Corporate and Institutional Banking divisions and BNZ.
NAB’s climate strategy also captures our operational emissions targets, which include our international offices and the capability of our colleagues to support our customers through the transition. For more details about our climate change strategy and governance, refer to our 2026 Annual Report (PDF, 16MB).
Action we're taking
Our main role in climate action is the financing we provide. Our actions are informed by science. We’re investing in positive change and helping customers do so too.
While we continue to focus on reducing our own greenhouse gas (GHG) emissions footprint, our greatest impact is through the finance we provide to customers.
We’re taking action to help our economy transition to one powered more by renewables, less by fossil fuels.
That's why we're continuing to provide finance to our energy generation customers and other high emitters as they transition to lower carbon operations and engaging with them on their transition plans.
Reducing our emissions
Since 2010, we have been playing our part by reducing our own operational footprint through emissions avoidance and reduction, and then offsetting residual emissions within our defined operational control boundary. NAB’s global operations are audited annually as part of NAB’s annual reporting process. BNZ is a Toitū net carbon zero certified organisation.
We’re continuing to cut emissions in our operations.
Progressing to net zero
Our ambition is to support our customers as we move together to a resilient net zero economy.
In 2026, 82% of our total power generation finance was for renewables.
Helping customers act too
Our customers are working towards lower emissions, and we’re engaging with them as they evolve their businesses. This includes:
- Helping colleagues better support customers to decarbonise and build climate resilience through targeted climate training.
- Helping customers become more resilient to natural disasters.
We’re providing finance to help customers reduce emissions, with tailored products and services that support customers in taking climate action.
For further information on our approach to Customer Transition Plans, refer to our 2026 Annual Report (PDF, 16MB), page 66.
Working together
To help get Australia to net zero we’re participating in the:
- UN Principles for Responsible Banking
- UN Environment Programme Finance Initiative
- RE100 Initiative
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As the world changes, so does our understanding of climate risk.
Read more about NAB’s environmental, social and governance (ESG) risk management. Further details are available in our 2026 Annual Report (PDF, 16MB).
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A Customer Transition Plan is required for customers in certain sectors and for certain types of finance.
We developed a Customer Transition Plan Assessment Framework to support the review of Customer Transition Plans and engagement with customers on their actions and progress. Application of the Assessment Framework is in addition to existing environment, social and governance (ESG) risk assessment processes which include consideration of climate-related risks, as well as decisions NAB may make on a case-by-case basis to support progress in achieving NAB's decarbonisation targets.
Read more about NAB’s ESG risk management. Further detail is also available in our 2026 Annual Report (PDF, 16MB).
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We continue to build on our climate risk capabilities and processes.
We regularly review our environment, social and governance (ESG)-related credit policy and appetite settings, including those related to our exposure to emissions-intensive, climate sensitive and low-emissions sectors. These reviews consider a range of factors including:
- Various climate change scenarios for both transition and physical risk.
- Customer strategies and plans and their alignment to the Paris Agreement temperature goals.
- Industry trends.
- Trends in our exposures to these sectors.
This review process has led to implementation of ESG-related credit policy and risk settings, including for coal, oil and gas. These risk settings are complementary to our interim sectoral decarbonisation targets and goals, which have been set to guide our lending across key sectors in our portfolio to align our lending portfolio to net zero emissions by 2050, as well our Customer Transition Plan Assessment Framework.
Further details about interim risk policy settings is provided in the 'Metrics and targets' section of the 2026 Annual Report (PDF, 16MB).
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In 2025, we achieved our target to source 100% of NAB Group’s operational electricity consumption from renewable sources, as part of the RE100 initiative. This was maintained in 2026.
We’ve also set a science-based target to reduce our scope 1 and 2 (market-based method) greenhouse gas emissions, aligned with a pathway to limit global warming to 1.5°C. We report on our progress in our annual reporting suite. Learn more about our environmental performance.
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In 2024, we established our new environmental finance ambition of $80 billion by 2030. As of 30 September 2026, cumulative environmental finance reached $34.7 billion towards our ambition, including $26.1 billion of lending activity and $8.6 billion of capital markets and Australian Carbon Credit Unit (ACCU) trading activity.
Learn more about our environmental financing ambition in our 2026 Annual Report (PDF, 16MB).
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We also strive to ensure our engagement on climate policy continues to be coordinated and consistent. We communicate our position and outcomes annually through our annual reporting suite.
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We first established an internal carbon price in 2010, as part of action to understand the cost of carbon and to inform our investment decision making. NAB will continue to disclose our internal carbon price through our 2026 Annual Report (PDF, 16MB).
Read more climate news
Learn how we’re working to be part of the climate solution on NAB News.
Explore sustainability at NAB
Environmental approach
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Environmental performance
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Natural capital and managing our environmental impact
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