Australia’s third-largest lender by market value is planning to reduce lending to the oil and gas sector by nearly a quarter by 2030, in a bid to cut emissions.
Westpac’s move followed rivals NAB, which implemented a $2.4 billion cap on lending to oil and gas companies, and CBA, which has pledged to halve emissions by 2030.
“By releasing sector targets for 2030 in emissions-intensive industries, we’re setting clear markers and will help our customers transition,” Westpac CEO Peter King told Reuters.
Westpac targets to reduce scope one, two, and three absolute-financed emissions by 23% in 2030 from firms involved in oil and gas exploration, extraction, or drilling. The bank will also stop dealing with companies with more than 5% of their revenue coming directly from thermal coal mining by the same year.
The lender joined the Net-Zero Banking Alliance (NZBA), a coalition of nearly 100 banks committed to aligning their lending and investment portfolios with net-zero emissions by 2050, convened by the United Nations, Reuters reported.