Apartment blocks at Breakfast Point, Sydney (Getty). Funds from Westpac's Social Tailored Deposit will be used to invest in initiatives with a positive social impact, such as building affordable housing.
Westpac has introduced Australia’s first Social Tailored Deposit, a product designed for customers looking to make a positive social impact with their investments.
The Social Tailored Deposit offers a medium to long term investment (1-5 years) with a minimum transaction amount of $1 million. Funds from the deposits will be directed to certified initiatives that promote access to essential services, affordable housing, or accelerate socio-economic advancement and empowerment.
The bank introduced the product in response to strong demand for sustainable investment options, said Nell Hutton, Chief Executive, Westpac Institutional Bank, adding that it was an “important step in supporting customers that are committed to a sustainable future.”
City of Sydney, the University of Sydney, and La Trobe University have been confirmed as the first investors.
“At La Trobe University, we are focused on embedding sustainability into every aspect of our operations, working with our students, staff, and our community,” said Mark Smith, Chief Operating Officer and Vice President (Operations).
“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.”
The Social Tailored Deposit has been designed to link with assets that seek to meet the International Capital Markets Association’s (ICMA) social bond principles, and the deposit product has been reviewed by research and data house Sustainalytics who provided a second party opinion.
“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," said City of Sydney Lord Mayor Clover Moore.
"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.”
Westpac’s Social Tailored Deposit follows the successful launch of its world-first Green Tailored Deposit in 2018.
More than 100 investors have invested almost $2 billion linked to assets including renewable energy, low carbon transport, low carbon buildings and water infrastructure.
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.
James Thornhill was appointed as editor of Westpac Wire in May 2022. Prior to joining the bank, he was a business and financial journalist with more than two decades of experience with international newswires. Most recently, he was a resources correspondent for Bloomberg, covering the mining and energy sectors, and previously reported on a broad range of topics from economics and politics to currency and bond markets. Originally from the UK, he’s had stints working in London, New York and Singapore, but is now happily settled in Sydney.
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