One year closer to net zero by 2035 

Our climate action strategy in 2023

Taking action on climate is still the number one issue our customers care about. So in 2022 we announced our climate action strategy, including the most ambitious net zero target of any Australian bank. 

A year on, here’s what we’ve achieved together and where we’re headed.

  • First Australian financial institution to set a validated science-based emissions reduction target
  • No more car loans for new fossil fuel cars from 2025
  • Our Clean Energy Home Loan (CEHL) portfolio has grown by 44% 
  • We’ve partnered with Seed Mob, Australia’s first Indigenous youth climate network 

We set validated science-based targets

We used the leading global standard for setting near-term emissions reduction targets from the Science Based Targets initiative (SBTi) to work out where we need to get to by 2030 to be aligned with a 1.5 degree scenario, which means we’re doing our share of keeping average global warming to 1.5 degrees above pre-industrial temperatures.

We're the first financial institution in Australia to set a target like this.

We’ll stop funding new fossil fuel car loans from 2025

We’re stepping up to help protect the climate and future generations by actively supporting the shift towards a decarbonised economy through ceasing car loans for new fossil fuel cars

  • Private passenger cars account for 62% of Australia’s transport emissions, and transport is the fastest-growing source of emissions in Australia
  • We also know public and active transport have a key role to play in a net zero economy, and that choosing electric vehicles is just one of the ways customers can support the transition to a sustainable transport future.  

We’re rewarding customers making their homes greener

Our Clean Energy Home Loan offers our customers reduced interest rates. 

  • Our CEHL portfolio has grown 44% since we launched our climate action strategy, with these homes emitting on average 35% less carbon than a standard Bank Australia-funded home.
  • Our CEHL customers have installed over 800kW of solar panels on their homes, which can generate over 1 million kWh annually. That’s like powering the washing machines of over 6,200 average Australian homes for an entire year.
  • Nearly one in five of our CEHL (Eco Upgrade) customers have installed a home battery, which means they can use solar power on cloudy days and at night. As well as reducing fossil fuels used to power their home, these customers are saving money on their energy bills.
  • We know Australian homes need to get off gas to reduce emissions from housing, and one in five of our CEHL (Eco Upgrade) customers have replaced gas hot water, or heating and cooling systems, with electric alternatives.

We’re making our operations more sustainable

  • Less than 2% of our emissions come from our operations and we already run on 100% renewable electricity. We’re working to minimise the carbon footprint of business by transitioning our fleet to electric vehicles (EVs), supporting ways to reduce business travel, and improving our waste management systems.
  • We’re also encouraging our staff to use active and public transport instead of driving, by having offices that are well located and offer end of trip facilities.
  • Moving our Head Office closer to public transport and bike paths has reduced our staff’s reliance on cars and motorbikes to get to work. The use of active and public transport is at 70% for staff survey respondents at our head office, up from 21% at June last year (Place of Work and Commute Survey, March 2023).

We’re acting on climate justice

  • We believe climate action needs climate justice, and we’re committed to amplifying the voices of First Nations leaders driving solutions to the climate crisis. To help achieve this, we’ve partnered with Seed Mob, Australia’s first and only network for First Nations young people, who are leading solutions and striving for a safer, healthier and more just future for all. 
  • Australia’s First Peoples have cared for country for over 60,000 years, and we believe leadership from Aboriginal and Torres Strait Islander peoples is vital to a safe climate future.
  • We also know the transition away from fossil fuels will affect vulnerable groups, and we’re committed to supporting a just transition as we strive for a net zero future. 

Where to from here?

Reaching net zero emissions by 2035 won’t be easy, and we know we need to work fast to reduce emissions across our portfolio.

Scaling up our sustainable products and rewarding customers for choosing low emissions homes and cars will be a key part of us achieving our goal.

Customers tell us reducing the carbon footprint of their homes is a priority. So right now, we’re focused on how we can help them get off gas and make the transition to electrifying their homes as easy and accessible as possible.

We remain committed to communicating openly about our progress with our customers, and working hard to achieve our climate action goals.

Want to be part of this ambitious climate journey?

Join over 185,000 other Bank Australia customers making a difference together. 

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