Big Four Net Zero SFT Capital Allocation Challenged by CEF

Australia
Uncategorized
Environmental, Social and Governance (ESG), Sustainable Finance

(16 April 2024 – Australia) Climate Energy Finance (CEF) claims Australia’s Big Four majors are “missing the mark” on their A$400 billion sustainable finance target (SFT), with the bulk of funding committed to minimally energy-efficient green buildings instead of renewables and decarbonising.

From the aggregate total of banks’ SFT allocations to date of A$184 billion, only seven percent (A$12.4 billion) has been channelled to “hard-to-abate” renewable energy sectors according to the CEF Green Wash report. ANZ has allocated A$3.9 billion, CBA A$4 billion, Westpac A$4.5 billion and NAB nothing to renewables from their SFTs.

“Our analysis shows the banks need to actively reorient their lending if they are to align their climate rhetoric with their capital flows. They must put ‘their’ money where their mouth is. Trumpeting climate action based on the low hanging fruit of financing minimally green-rated buildings is not enough and leaves them open to accusation of greenwashing. The banks should be using their firepower to advocate for more ambitious and coordinated policy, regulatory and investment settings that reflect and enable our national climate and sustainable economic growth goals, demonstrating leadership in Australia’s economic transformation to a zero-carbon economy” commented CEF Finance Analyst and report author Nishtha Aggarwal.

“Australia’s ability to achieve its national renewables and emissions reduction targets and secure its position in the rapidly emerging net zero world economy depends on its ability to mobilise capital at speed and scale towards the sectors that shift the dial the most. The Big Four banks should be key drivers of this mobilisation” stated CEF Director Tim Buckley.

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