Climate change and environmental issues
Our commitment to action on climate change
We recognise that climate change is one of the most significant issues that will impact the long-term prosperity of the economy and our way of life.
We are committed to managing our business in alignment with our support for the Paris Climate Agreement and the need to transition to a net zero emissions economy by 2050. This includes how we provide financial services, support communities, operate our facilities, engage on matters of policy, and contribute to industry initiatives.
We first began measuring and reporting on climate-related metrics in 1996 and released our first climate change position statement in 2008. Our , our fourth update to the plan, lays out our principles and priority actions.
- A transition to a net zero emissions economy is required by 2050.
- Economic growth and emissions reductions are complementary goals.
- Addressing climate change creates opportunities.
- Climate-related risk is a financial risk.
- Collective action, transparency and disclosure matter.
Our Action Plan
- Help customers and communities respond to climate change.
- Improve the climate change performance of our operations.
- Support initiatives and policies to achieve the goals of the Paris Agreement.
- New lending to climate change solutions - $3.5bn to 2023 and $15bn by 2030.
- Reduce lending to thermal coal mining to zero by 2030.
- Reduce emissions intensity of lending to electricity generation sector to 0.23tCO2-e/MWh by 2025 and 0.18tCO2-e/MWh by 2030.
- Reduce Scope 1 & 2 emissions by 85% by 2025 and 90% by 2030 against a 2016 baseline.
- Reduce Scope 3 Supply Chain emissions by 35% by 2030 against a 2016 baseline.
- Committed to sourcing the equivalent of 100% of our global electricity consumption through renewable sources by 2025.
- Maintain carbon neutrality under the Climate Active Standard for Organisations.
- Reduce water consumption in Australian workplaces by 15% by 2025 against a 2020 baseline.
- Recycle 80% of waste from Australian commercial sites by 2025 and 85% by 2030 against a 2020 baseline.
- Largest bank lender to new renewable energy projects in Australia for the past five years2.
- $1.9 billion new lending to climate change solutions3.
- Renewables now represent over 79% of our lending to the electricity generation sector, up from 59% in 2016.
- Continued developing our Paris-aligned financing strategies and portfolio targets for sectors representing the majority of our financed emissions including in the oil and gas, metals and mining sectors.
- Sourced the equivalent of 45% of our global electricity consumption through renewable sources in 2021.
- Participated in a range of industry forums including the United Nations Environment Programme Finance Initiative (UNEP-FI) Principles for Responsible Banking (PRBs) and the Australian Sustainable Finance Initiative.
For more information, we provide regular updates on our progress in our Performance Reports
1 As at 30 September 2021.
2 Source: IJGlobal and Westpac Research data.
3 'Climate change solutions' definition can be found in 2021 Sustainability Appendix – Glossary.