Commercial, Energy Efficiency, GHG Emissions - March 9, 2023
Bank Australia Sets 2030 Goal
Bank Australia is the first financial institution in Australia to announce a validated interim emissions reduction target for 2030 to meet its 2035 net zero goal. The 2030 target was validated by the Science Based Target initiative (SBTi).
The 2030 target will apply to Bank Australia’s Scope 1, 2 and 3 emissions, including the most significant contributor to the bank’s current carbon footprint - its financed emissions.
Bank Australia’s residential mortgage portfolio accounts for over 90% of the bank’s total emissions currently, and the bank will aim to reduce emissions by 64% per square meter by 2030 (from a 2021 baseline). The bank’s target also covers its corporate bonds, commercial real estate and corporate loans.
Operational emissions account for less than 2% of Bank Australia’s total emissions since its offices are already powered using 100% renewable electricity, but Bank Australia will continue improving efficiencies and reducing emissions across operations, including staff transport and waste management.
Key to the bank’s strategy to meet its 2030 target will be providing customers with services and products that incentivize sustainable homes and transport, such as its clean energy home loan product, and working with customers to encourage electrification.
Bank Australia’s Chief Impact Officer Sasha Courville said having a validated, near-term target is a critical step in demonstrating the bank’s commitment to climate action.
“We always knew our own commitment to net zero by 2035 would need to be backed up by a nearer-term target, because that shows us the areas we need to focus our efforts on, and how urgently we need to act, she said in a statement. “Climate change is the number one issue our customers care about and it’s our priority to transparently communicate the steps we’re taking to address the climate crisis.”