The Big Four banks have given their backing to a bold plan to reshape Australia’s financial system.
The Australian Sustainable Finance Initiative’s new roadmap to meet 21st century climates challenges has received strong across-the-board support for a net zero carbon economy.
The initiative by 80 organisations, including insurers and super funds, that was trailed by InFinance a year ago comes as APRA announces it will be assessing the climate vulnerability of the major banks.
ASFI Co-chair Jacki Johnson said “The Roadmap signifies a step change in how the finance sector does business.
“It provides a path towards a financial system that is better prepared to face future risks and shocks, such as a changing climate; to meet the current needs of Australians while delivering on long-term needs for a sustainable future; to enhance financial inclusion and well-being of all Australians, including our most vulnerable; and to direct capital to where it is most needed.”
“Many of the challenges that Australia faces are global in nature and, beyond our borders, a major international shift is underway shaping capital flows.
“There is an urgent imperative for Australia’s financial services sector to act to remain globally competitive in a world increasingly prioritising a sustainable economy.
“We are seeking to re-orient capital – where capital is lent, what it insures and where it is invested – to supporting and building value today while strengthening the economic, natural and social assets that underpin our long term prosperity."
Co-chair Simon O’Connor said: “We certainly see that a clearer articulation at a Federal level around our targets and the mid-point trajectory would provide greater certainty and hasten this transition but as a sector, we are going to continue to move forward towards this net zero goal.”
ANZ’s Christina Tonkin - MD Corporate Finance - said: “ASFI is a timely platform to help ensure Australia’s financial system plays its role in supporting customers, communities and government efforts to manage the environmental impacts of climate change and its potential social costs.
“We understand the impact the financial sector has – both positive and negative – on transitioning to a net zero carbon, more sustainable economy.
“That’s why ANZ is pleased to have participated in the Report issued today, which sets out a wide-ranging blueprint for Australian financial institutions to help deliver on the Paris Agreement and the Sustainable Development Goals.”
CBA’s Charles Davis - Head of Sustainable Finance and ESG, Institutional Banking & Markets - said: “There is a rapidly increasing focus from all stakeholders on the environmental and social impacts of doing business, and in particular the role that financial institutions are playing.
“CBA is therefore pleased to work in collaboration with the broader financial services sector on this important ASFI initiative.”
NAB’s Connie Sokaris - Executive, Corporate Finance and Steering Committee member - said: “NAB is pleased to have played an active role in establishing ASFI and in the collaborative effort to develop the ASFI Roadmap.
“We have been involved through the Steering Group, Coordinating Working Group and Technical Working Group.
“The Roadmap recommendations set out a series of actions that the financial services sector can take to contribute to a more sustainable future, and this includes banks, insurers, investors and regulators.
“We recognise the important leadership role we play in both supporting customers through the low carbon transition and helping address society’s biggest challenges.”
Westpac’s Didier Van Not - General Manager Corporate and Institutional Banking and Steering Committee member - said: “The challenging events of this year have underscored the importance of a sustainable and resilient financial system.
“As Australia’s first bank and oldest company, we recognise that delivering a transition to a net zero, inclusive, and thriving economy is critically important for how we create value over the long term.
“Westpac is proud to have participated in this unprecedented collaboration across the financial sector to develop a roadmap for a more sustainable financial system.”
