Our mortgage portfolio is by far the largest source of our emissions – over 90% of our emissions come from the energy use of the homes we fund through loans.
- The graph above shows our trajectory for reducing the emissions from our mortgage portfolio aligned with our science-based target to 2030, and then to our own net zero target by 2035
Science-based targets for real estate are calculated on a per m2 basis, which means we’re tracking how many kilograms of CO2-e there are from each m2 of floor space we fund.
It’s also good practice to track what this means in absolute terms – based on our projections of how many homes we’ll be funding in 2030, we estimate that we’ll need to reduce our absolute emissions by 49% by 2030, down to a total of 50,000 tonnes CO2-e /year by 2030.
To reduce emissions from our mortgage portfolio, we’ll be supporting customers to decarbonise their homes via clean energy upgrades like onsite renewables, energy efficiency and going all electric.
We’ve offered our Clean Energy Home Loan since 2020, so we have some experience in encouraging and supporting customers to make energy-efficiency improvements. An increasing number of households have solar and, as the grid decarbonises, emissions from electricity are decreasing.
This means that we want to put a greater focus on electrification, and working out how we can support households to get off gas and cut their emissions. We've started this work by launching our Electrify Your Home pilot program.
We’ve also got a lot of work to do on our data, which we explain in more detail below.