Big four chart separate paths on customers’ transition plans
ANZ and Westpac have given their highest carbon-emitting customers until October 2025 to present credible energy transition plans to the banks.
The lenders will rely on them to determine if borrowers can continue to access debt funding amid growing pressures to align loan books with the economy’s net-zero targets.
In updated climate policies released alongside the banks’ annual results, ANZ and Westpac confirmed Paris-aligned emission reduction plans need to be tabled by corporate customers by the end of their 2025 financial years. ANZ and Westpac have a September 30 balance date.
The banks had previously said plans would be needed in or by 2025, representing a tightening of their timelines.
ANZ and Westpac’s expectations are unified with National Australia Bank. The lenders will provide customers with an additional nine months compared to Commonwealth Bank, which requires transition plans to be in place by the start of its calendar 2025.
CBA and Westpac have adopted more restrictive lending policies on new and expanded fossil fuel projects compared to ANZ and NAB. Lending to the fossil fuel sector will be a key focus at ANZ, NAB and Westpac annual shareholder meetings in December.
ANZ has come under fire from activist groups Market Forces and the Australian Conservation Foundation this week for not requiring fossil fuel companies to have Paris-aligned scope 3 emissions reductions targets as part of its transition plans. The bank released a 90-page, climate-related financial disclosures document alongside its full-year results on Monday. Scope 3 emissions are those generated indirectly by a business.
“It’s hard to overstate how big of a flaw that is, considering that scope 3 emissions often account for 90 per cent of
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