The Commonwealth Bank of Australia, that country’s largest mortgage lender, is the first major Australian bank to start walking away from, the Commonwealth Bank of Australia stated that it had already been ditching clients not aligned with the Paris Agreement. The real world impact of the bank’s new policy could be put to the test as soon as next week, when a major methane loan is set to be approved without participation by CBA.
Cassandra Williams says what is considered a robust transition plan is becoming a global issue and is turning the heat up on companies. “Making sure that transition plans are credible will be critical in this piece, and particularly from a ‘greenwashing’ and a ‘greenhushing’ perspective,” she said. “This ups the ante for banks, but also for companies … because otherwise your funding — your capital lifeline — might be cut off.
The National Australia Bank released a statement this week saying it capped its oil and gas exposure at US$2.28 billion and no longer loans money to thermal coal, the kind used for electricity. Its climate report, however, only says that NAB “intends to require a transition plan” from fossil fuel clients by October, 2025 and makes no commitment about what will happen if the transition plan doesn’t hold up to scrutiny.