Funding the transition to net zero

Our customers and communities want us to take action on climate change. Like every business, it’s our responsibility to reduce our negative impact on the environment and take on important challenges like social inequality and climate change.

We see three immediate opportunities to build a more resilient, thriving and net zero emissions economy.

Sustainable borrowing

Firstly, by increasing our lending to sustainable activities and supporting our business customers to issue sustainable bonds, we’re encouraging more capital to flow to new, innovative, and productive parts of the economy. We’ve committed $10 billion for sustainable finance by 2025 - funding that can help a company achieve its sustainability goals. Recent examples include how we’re helping KiwiRail to buy two new low-emissions ferries, and helping incentivise large emitters like Genesis Energy to reduce their emissions to align with the goals of the Paris Agreement.

Sustainable products and services

Secondly, we’ve tried to offer meaningful sustainable products and services to customers, so it’s easier for them to take the right action. Our Westpac Warm Up home loan is helping New Zealanders future-proof their homes and cut their power bills. We offer up to $10,000 in interest-free lending for heat pumps, insulation, ventilation, double glazing or solar panels.

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Government and business collaboration

We’re leading by example and collaborating with government and other businesses to drive climate change solutions. With our 2020 Climate Risk Report, we were the first bank in Aotearoa to disclose its exposure to climate change in line with the recommendations of the Taskforce for Climate-Related Financial Disclosure.

This year we also commenced looking more closely at our financed emissions, with the aim to ensure our lending portfolio is on track to helping limit global temperature rise to 1.5°C above pre-industrial levels. Our aim is to support Aotearoa’s transition to a resilient, net zero economy for the benefit of all New Zealanders and in-turn playing our part in a world issue.

We’ve been recognised by two separate industry awards as leaders in sustainable finance, and we’re just getting started. Climate change is a threat to our business and the country, and also an opportunity to do things differently and more sustainably. We want to bring as many New Zealanders along with us as we can.