): “Commonwealth Bank stops lending to fossil fuel companies without genuine emissions plan.” It’s about time. Add that to
The CBA reports that they have AU$63 billion invested in renewable energy and are committed to “supporting Australia’s transition to a net zero economy by 2050, by continuing to manage the risks and opportunities of climate change and supporting our customers in an inclusive transition. Decarbonising Australia’s electricity grid remains the priority step for Australia’s net zero future.” Until today’s announcement, I would have considered these as “just words.
Morgan Pickett, a bank analyst at Market Forces, commented after the announcement: “This announcement is massive for the domestic banking sector. For them to say we’re not banking companies that aren’t compatible with a safe climate, this will be a really big signal to the rest of the market, not just the banks. The science is clear. There’s enough fossil fuel infrastructure already in existence.”
Another factor influencing the bank’s decision includes exposure to climate-related risks in its insurance business. “To help us effectively manage our climate risks, we monitor the impact of weather events and natural disasters on our business and customers, including in our home lending portfolio,” CBA’s climate report states. Commbank has about $30 billion in home loans exposed to cyclones, floods, and fires.