Climate change and environmental issues

Thermal coal mining¹

Target: Zero scope 1, 2 and 3 absolute financed emissions by 2030 to companies with >5% of their revenue² coming directly from thermal coal mining.

_{¹ Covers production and sale of thermal coal, with adjacent sectors (including mining service providers) excluded. Transactional banking and rehabilitation bonds are excluded.}

_{² Annually, we calculate the revenue percentage by assessing customers’ full-year audited financial reports, based on a rolling average of the prior three years of revenues.}

Power generation

Target: 0.10 tCO₂-e/MWh for scope 1 and 2¹ by 2030.

_{¹ Refers to scope 1 and 2 emissions of power generators, i.e. customers with >10% revenue coming from power generation or >5% revenues from thermal coal electricity generation. In Australia, this applies to customers under ANZSIC (1993) code 3610 with National Greenhouse and Energy Reporting Scheme designated generation facilities and have >10% revenue coming from power generation.}

Cement production

Target: 0.57 tCO₂-e/tonne of cement for scope 1 and 2 by 2030¹.

_{¹ This target covers customers that produce clinker in-house. The target has been set for customers’ scope 1 and 2 emissions in relation to the production of cement. It covers emissions generated from calcination in clinker production as well as fuel combustion and electricity consumption associated with the cement production process.}

Iron and steel – steel production

Target: 1.42 tCO₂-e/tonne of steel for scope 1 and 2 by 2030.

Transport: Aviation (passenger aircraft operators¹)

Target: 76.4 gCO₂-e/passenger km² for scope 1 by 2030².

_{¹ Covers customers that operate scheduled air transport for passengers, including freight operations undertaken by passenger airline operators. We have excluded any freight only operators, rotary wing aircraft, non-scheduled aircraft operations and aircraft lessors.}

_{² Passenger kilometres (pkm) is a measure of activity for passenger airline operators.}

Agriculture

Agriculture (Australia)¹

Targets: 

Dairy – 10% reduction in scope 1 land management² emissions intensity (tCO₂-e/tonne of FPCM³) by 2030 from a 2021 baseline.

Beef and sheep – 9% reduction in scope 1 land management emissions intensity (tCO₂-e/tonne of FW⁴) by 2030 from a 2021 baseline.

As part of our Agriculture targets, we are committed to no deforestation, which provides for no further conversion of natural forest⁵ to agricultural land use within farm systems from 31 December 2025 for customers in scope of the targets.

Agriculture (New Zealand)⁶

Targets:

Dairy – 10% reduction in scope 1 land management emissions intensity (tCO₂-e/tonne of FPCM) by 2030 from a 2021 baseline.

Beef and sheep – 9% reduction in scope 1 land management emissions intensity (tCO₂-e/tonne of FW) by 2030 from a 2021 baseline.

As part of our Agriculture targets, we are committed to no deforestation, which provides for no further conversion of natural forest to agricultural land use within farm systems from 31 December 2025 for customers in scope of the targets.

_{¹ Applies to institutional and commercial relationship-managed Agribusiness customers with Total Committed Exposures (TCE) $1.5m who are captured by dairy, beef, sheep and mixed farming ANZSIC codes.
² Land management emissions refers to operational emissions resulting from how land is managed rather than emissions resulting from land-use change. Land management emissions arise from processes such as enteric fermentation, biomass burning and fertiliser use.
³ Fat protein corrected milk (FPCM) is a commonly used measure of dairy farm outputs. FPCM is milk corrected for its fat and protein content to a regional standard. In the Science Based Target initiative Forest, Land and Agriculture Guidance (SBTi FLAG) reference scenario we used for setting Agriculture targets, dairy production is expressed in tonnes of FPCM.
⁴ In the SBTi FLAG tool interface animal commodities are expressed in tonnes of fresh weight (FW) of carcass where carcass is defined as animal meat, fresh, chilled or frozen, with bone.
⁵ A forest that is a natural ecosystem, possessing many or most of the characteristics of a forest native to the given site, including species composition, structure, and ecological function. Natural forests include: (i) Primary forest that have been subject to major human impacts in recent history. (ii) Regenerated forest that were subject to major impacts in the past (for instance by agriculture, livestock raising, tree plantations, or intensive logging) but where the main causes of impact have ceased or greatly diminished and the ecosystem has attained structure, function and composition of a natural forest. (iii) Managed natural forests where much of the ecosystem’s composition, structure, and ecological function exist in the presence of activities such as harvesting of timber or small-scale cultivation. (iv) Forests that have been partially degraded by anthropogenic or natural causes (e.g. harvesting, fire, climate change, invasive species, or others) but where the land has not been converted to another use and where degradation does not result in the sustained reduction of tree cover below the thresholds that define a forest or loss in structure, function or composition. The categories “natural forest” and “tree plantation” are mutually exclusive, though in some cases the distinction may be nuanced. Source: Accountability Framework Initiative. The Accountability Framework Core Principles (2023).}
⁶Applies to relationship-managed Agribusiness customers with TCE ≥NZ$1m who are captured by dairy and sheep and beef farming ANZSIC codes.

Commercial Real Estate (Offices)

Target: 59% reduction in scope 1 and 2¹ emissions intensity (kgCO₂-e/m² net lettable area²) by 2030 from a 2022 baseline for Australian and New Zealand offices³.

_{¹ Base building operational scope 1 and 2 emissions. Target excludes all scope 3 emissions (e.g. tenant emissions from electricity and appliance use, construction, embodied emissions and corporate activities).
² Floor space is defined as net-lettable area (NLA). In Australia, the standard used for determining the NLA is set out in the Property Council of Australia (PCA) March 1997 Method of Measurement. In New Zealand, this is Rentable Area as set out in The Guide for the Measurement of Rentable Areas NZ.
³ Our target applies to facilities that are assigned office related ANZSIC codes, and with a TCE greater than or equal to $5m for Australian facilities or NZ$5m for New Zealand facilities. This excludes exposures associated with site finance, construction and renovation of commercial real estate assets.}

Residential Real Estate (Australia)¹

Target: 56% reduction in scope 1 and 2² emissions intensity (kgCO₂-e/m²) by 2030 from a 2022 baseline.

_{¹ Excludes mortgages on vacant land as well as construction and renovation loans given there are no in-use operational emissions associated with these.}

_{² Scope 1 and 2 emissions refer to in-use operational emissions from energy associated with the operation of the building, consisting of purchased electricity and natural gas consumption.}