Australia’s second-biggest bank, ANZ, has questioned a report claiming the nation’s four biggest financial institutions have been dragging their heels on committing to climate goals.
The nation’s Big Four banks drew criticism following a report from Market Forces, an environmental group that calls for banks, governments, and superannuation funds to use money for environmental protection.
The report claims Commonwealth Bank, ANZ, Westpac, and NAB collectively poured $61 billion (US$41 billion) into fossil fuels since the Paris Agreement was adopted in 2015—despite the banks cutting back funding to the sector by almost half from 2022-23.
One of the Paris Agreement’s core aims is to limit financial support for fossil fuels, directing investment to low-emissions alternatives.
Analysis in the report stated the Big Four had loaned $3.6 billion to fossil fuel initiatives in 2023, including $2.5 billion for companies expanding coal, oil, and gas developments.
The Epoch Times contacted each of the banks for comment and ANZ responded.
An ANZ spokesperson said the bank had “significant questions” around the methods used in the report, and was “not surprised” to be mentioned given ANZ was the nation’s largest lender to the energy sector.
“It’s important to remember this is the most carbon intensive part of our economy and financing its transition to net zero will require significant capital,” the spokesperson told The Epoch Times.
“It’s important also to note that our financed emissions included in our emissions reduction pathways for the power generation, oil and gas and thermal coal sectors have reduced by 25 percent, 30 percent, and 96 percent respectively, between 2020 and 2023.”
Meanwhile, banking analyst Kyle Robertson spoke on behalf of Market Forces to say he believed customers expected banks to take all measures to mitigate climate change and environmental damage.
“ANZ takes the cake as the biggest funder of fossil fuels, pouring more than $20 million into coal, oil and gas since Australia adopted the Paris Agreement to limit climate change,” he said.
Market Forces claims 2023 was the first year the Big Four did not directly finance a new or expanded coal, oil, or gas project since the Paris Agreement.
The group also claimed the banks had provided almost 70 percent of their fossil fuel lending to companies out of line with climate commitments.
ANZ’s spokesperson said the bank had been working to its targets, with measures in place to ensure clients could fulfil theirs.
“In line with our target, we will have largely exited all thermal coal miners by 2030, with remaining direct exposure largely due to mining rehabilitation bonds which will continue to be provided to existing customers to ensure their responsibilities with exiting mine sites are fulfilled,” they said.
