As a major financial institution, we recognise we can help create and enable positive sustainability outcomes across climate, environmental and social objectives through our approach to sustainable finance. We have now published our approach in our Sustainable Finance Framework.
Sustainable Finance Framework
The aim of our (Framework) is to help us provide lending and bond facilitation activities that contribute to positive climate, environmental and social outcomes. The Framework aims to provide clarity on what is considered sustainable, to support our people and customers as they target sustainable finance. In so doing, we can better support customers in their transition to net-zero and be their transition partner of choice.
- Details how we consider sustainable finance transactions and classify them as Green, Transition, Social or Sustainability, using our Sustainable Finance Taxonomy or industry standards, principles and guidance to guide this classification
- Is accompanied by Westpac’s Sustainable Finance Targets (Targets) – the amount of qualifying sustainable lending and bond facilitation we are seeking to achieve.
Sustainable Finance Targets
Our Sustainable Finance Targets are to provide by 2030 a set amount of:
- Lending activities that qualify under our Sustainable Finance Framework for inclusion in our Targets
- Bond facilitation activities that qualify for inclusion in our Targets.
We expect the Framework to be reviewed periodically and expanded with additional sectors and/or Sustainable Finance Taxonomy criteria as required over time. We will aim to monitor and assess relevant legal, policy, regulatory, economic, technological and stakeholder developments, and any other material changes to Westpac’s financing portfolio. We also aim to review the Framework Taxonomy for alignment with national taxonomies in Australia and New Zealand as they develop.
Sustainability Risk Management Framework
Our Sustainability Risk Management Framework sets out our approach to managing sustainability risks in all aspects of our operations, including environmental, social and governance risks in lending.
Specific policies and positions
The following position statements set out our approach to assessing the environmental, social and governance dimensions of our banking and financing activities. These are supported by policies in Westpac's credit manuals:
Updates to our position statements reflect our continued work to operationalise these statements and strengthen our management of sustainability risks, including responding to evolving regulatory requirements.
¹ A point in time approach to using total committed exposures (TCE) or balance for lending activities: The balance represents the balance outstanding at a point in time and is applicable for residential mortgages. A cumulative approach for qualifying bond facilitation activities: A cumulative approach to measure bond facilitation towards a 2030 Target best represents the flow nature of the bond facilitation activity, as well as the characteristics of the bond market and customer issuances dynamics, which can fluctuate year on year depending on market conditions.