Borrow
Australia’s big banks slammed over inadequate climate risk response
Activists say that Australia’s financial institutions are hedging their bets on climate change.
Australia’s big banks slammed over inadequate climate risk response
Activists say that Australia’s financial institutions are hedging their bets on climate change.

Critics say that Australia’s banking sector is largely talk and light on action when it comes to the climate crisis.
According to a new report published by global advocacy group Greenpeace, Australia’s biggest banks are leaving themselves wide open to climate risk and failing to live up to the spirit of their public statements around the climate crisis.
Greenpeace Australia Pacific senior coal campaigner Glenn Walker said that the group’s analysis highlighted the way that Australia’s big four banks are trying to play both sides when it comes to tackling the climate crisis.
“Australia’s major banks all claim to support the Paris Agreement and global progress to net-zero by 2050, but Greenpeace’s analysis reveals that they’re hedging their bets, with shonky policies ridden with loopholes to enable lending to fossil fuel projects like AGL’s coal-burning arm Accel,” he said.

Greenpeace’s analysis suggested that Australia’s big four banks loaned $8.9 billion to the coal, oil and gas industries in 2021, and that the past four years have seen these banks lend almost three times as much to fossil fuel companies as they do to renewable-focused firms.
Combined, Greenpeace said that carbon emissions enabled by the financing of Australia’s biggest over the four-year period covering 2016-2020 amounted to 33 times that of Australia’s own annual domestic emissions.
The group also revealed the findings of an international review of domestic climate policies within Australia’s banking sector that saw many local financial institutions fall short, with ANZ “leading” on a score of 22 out of 200 points. Commbank, NAB and Westpac followed on 18, 14 and 13.5 points, respectively.
Broadly speaking, the issue that Greenpeace identifies in the report is a misalignment between the bank’s claims to support the Paris Agreement target of net zero by 2050 and their own internal policies.
“While there is common reference to a 2030 date, this refers to financing from the bank, rather than the planned activities of clients beyond 2030,” the report noted.
That being said, the report did find a few bright spots.
“Some of the other banks in the Australian banking sector have good and clear policies relating to coal power generation, most notably ING, Suncorp and Citigroup,” the report said.
Pointing to the impending AGL demerger, Mr Walker said that the group was turning its sights on Australia’s biggest climate polluter.
“If any of the big four banks retain their outdated climate policies and proceed with funding Accel Energy, they will be exposed not only to significant financial risk, but a huge amount of pressure,” he said.
About the author

About the author


Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more

Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more

Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more

Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more

Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more

Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more

Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more

Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more

Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more

Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more

Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more

Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more

Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more

Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more

Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more

Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more