Climate Change Scenario Analysis summary released
9 November 2016
Westpac released today the summary insights of its Climate Change Scenario Analysis, published within its 2016 Sustainability Performance Report.
The analysis was conducted during the year to understand the longer term impacts on the Australian economy – including risks and opportunities for Westpac – of limiting global warming to less than two degrees Celsius above pre-industrial levels, meaning the Australian economy reaches net zero carbon emissions by 2050.
Drawing on Westpac’s own industry, risk and economic expertise, as well as climate change expertise from Ernst & Young and Climate Works Australia, the research modelled three scenarios and examined the impact of a carbon price ranging from USD20 to USD300 over short, medium and long term horizons. This analysis has given Westpac a clearer understanding of growth prospects for sectors of the Australian economy and its role in actively supporting Australia’s transition to a low carbon economy*.
Following on from this phase of work, Westpac plans to conduct ‘deep dive’ reviews of a number of key sectors and will release its refreshed Climate Change and Environment Position Statement in 2017.
Other important actions
Westpac also took other important steps during the 2016 financial year to support the transition to an economy that limits global warming to less than two degrees, including:
- Increased total committed exposure to the CleanTech and environmental services sector to $6.2 billion, up from $6.1 billion in the previous year, directed to activities such as renewable energy generation, green builds, forestry, energy efficiency and green business.
- Directed 59% of Westpac’s total electricity generation finance to renewable energy finance, up from 45% five years ago.
- Introduced a new Energy Efficiency Financing Program supported by energy efficiency specialist Verdia, to provide business customers with an end to end solution to identify, finance and install equipment to improve energy efficiency of their businesses.
- Maintained an emissions intensity of our generation portfolio well below the emissions intensity of the National Electricity Market benchmark.
- Raised $500 million through Westpac Climate Bond issue, with funds to be allocated to renewable energy facilities and low carbon commercial properties.
*This paragraph amended to include further detail on 30 April 2018.