The 2035 net zero target is the headline commitment in Bank Australia’s new climate action strategy that sets out its ambitions for the coming decade across the key areas of decarbonisation, climate justice, regenerative finance, and the protection of nature.
The bank is committed to aligning with best practice on net zero for financial institutions as it emerges, including limiting reliance on carbon offsets.
In support of its pathway to net zero emissions, Bank Australia will seek endorsement of its 2030interim emissions reduction targets across its scope 1, 2 and 3 emissions by the Science Based Targets initiative within 12 months. These science based targets will apply to Bank Australia’s operations, as well as its residential and commercial lending and corporate bond portfolios, which make up 84% of its lending and investment activities.
Bank Australia Managing Director Damien Walsh said that now is a critical time for business to take decisive action and commit to deeper and more rapid decarbonisation of the economy.
“Climate change is the most urgent challenge of our time. At Bank Australia, we’ve been listening to our customers and we know it’s their number one concern, and it’s one we share.
“Our 2035 net zero target is the most ambitious of any bank in the country and makes Bank Australia one of the most ambitious banks globally. We hope our stance encourages other banks and financial institutions to accelerate their climate objectives as well.”
“We’ve set an ambitious target to achieve net zero emissions across not only our operations, but across our lending portfolio. We know that to achieve net zero, we’ll need to work in partnership with our customers to reduce their emissions and advocate for rapid electrification of Australian homes.”
“We’ll also be exploring directly investing in projects that drawdown carbon from the atmosphere through our conservation reserve project and committing to financing $1.5 billion of clean energy transition and conservation by 2025.”
“Our strategy has a focus on climate justice, both for regions transitioning away from fossil fuels like the Latrobe Valley and prioritising First Nations leadership and voices on climate action.
“These targets are bold. We don’t yet have all the answers on how we’re going to achieve them, but we’re committed to working hard and being transparent about our progress.”