Media releases
Westpac launches Australia’s first social deposit
19 March 2025
Westpac today announced the launch of Australia’s first Social Tailored Deposit, a medium to long term investment product (1-5 years) with a minimum transaction amount of AUD $1 million, designed for customers seeking investments that are focussed on delivering improved social outcomes.
Westpac’s Social Tailored Deposit is aligned to the bank’s sustainable finance framework and has been designed to link with assets that meet the International Capital Market Association (ICMA) social bond principles.
Finance from the deposits will be directed to initiatives that promote access to essential services, affordable housing or accelerate socioeconomic advancement and empowerment.
Westpac Institutional Bank Chief Executive Nell Hutton said, “We’ve seen growing investor demand in sustainable investment options, and we see the Social Tailored Deposit as another important step in supporting customers that are committed to a sustainable future. We’re delighted to be launching this Australian-first deposit solution with three Westpac Institutional Bank clients: City of Sydney, University of Sydney and La Trobe University.”
City of Sydney Lord Mayor Clover Moore said, “This investment will support affordable housing projects and essential education, healthcare and transport services, while the returns help fund our long-term capital works program. Socially sustainable investment doesn’t just make financial sense, it’s the right thing to do. We hope to set an example and send a signal to the broader market that we support the development of more socially sustainable investment options.”
University of Sydney Vice-President (Operations) Nicole Gower said, “We’re continually looking for ways to improve how we incorporate environmental, social and governance factors in our investments, and look forward to seeing how our Social Tailored Deposit with Westpac performs and contributes to improving social outcomes and sustainability across a range of measures.”
La Trobe University Chief Operating Officer and Vice President (Operations) Mark Smith said, “At La Trobe University, we are focused on embedding sustainability into every aspect of our operations, working with our students, staff, and our community. Our commitment is exemplified by the Social Tailored Deposit, a responsible investment product that aligns perfectly with our Sustainable Finance Framework, allowing us to wisely invest surplus cashflow.”
Westpac’s Social Tailored Deposit follows its successful launch in 2018 of the world’s first Green Tailored Deposit certified by the internationally recognised Climate Bonds Initiative. Today more than 100 investors have invested almost $2bn1 linked to assets including renewable energy, low carbon transport, low carbon buildings and water infrastructure.
Just like the Green Tailored Deposit, the Social Tailored Deposit is expected to be popular with government and public sector investors, as well as investors with a social mandate. It is designed to meet the needs of investors across institutional, business and private banking.
Global sustainable investment research, ratings and data provider Morningstar Sustainalytics provided a second-party opinion on the deposit.
Commenting on the deposit, Morningstar Sustainalytics’ Head of Sustainable Fixed Income Research Barbara Lambotte said, “The Westpac Social Tailored Deposit is the first framework that Morningstar Sustainalytics has opined on, both in Australia and globally, that is solely dedicated to the issuance of social deposit products. Based on our assessment, Morningstar Sustainalytics is confident that Westpac is well positioned to issue social tailored deposits and that the Westpac Social Tailored Deposit is credible, impactful and aligns with the core components of the Social Bond Principles 2023.”
Further information regarding the Social Tailored Deposit can be found on Westpac’s website here.
ENDS
1 $1,966bn as at 30 September 2024
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