NAB chief ‘taking into account’ landmark climate report in oil...

NAB chief ‘taking into account’ landmark climate report in oil and gas policyBy Charlotte GrieveJune 2, 2021 — 9.50amSaveShareNormal text sizeLarger text sizeVery large text size10View all commentsNational Australia Bank chief executive Ross McEwan has pledged to consider the findings of the International Energy Agency’s landmark climate report in the bank’s yet-to-be-released policy on oil and gas, after lobbying from environmental activists.A coalition of climate groups claiming to represent 1 million Australians sent a letter to each of the big four banks on Monday, calling for an immediate end to financing new oil and gas projects and any exposure to the sector to be phased out by 2030.The letter, obtained by The Age and Sydney Morning Herald, pointed to the IEA’s recent report that declared there could be no new oil and gas fields developed if the world was to achieve the Paris accord’s target of limiting global temperature rises to as close to 1.5 degrees Celsius as possible.
It was sent to Mr McEwan, ANZ chief Shayne Elliott, Commonwealth Bank sustainability head Euan Robertson and Westpac sustainability head Philip Tapsall and signed by 13 environmental groups including the Australian Conservation Foundation, GetUp and Greenpeace Australia.“Australian banks have a powerful role to play in accelerating the transition to a climate-safe economy that creates millions of good jobs,” it said. “The IEA report shows that new gas projects in Australia – including those in the Beetaloo Basin, the Canning Basin, the Narrabri Gas Project, and the Scarborough project and LNG processing facility – are not compatible with reaching net zero emissions by 2050 and should not be financed.”RELATED ARTICLEInvestingThe warming planet is about to revolutionise how banks define riskNAB has already banned funding certain oil and gas projects, including those in Arctic wildlife reserves, but the activists want all new projects banned. Mr McEwan responded within three hours from his direct email account, claiming the IEA’s report would be included in the bank’s review on oil and gas, with a new policy set to be released in September.“Our working group is taking into account the recent findings of the IEA’s 1.5 degree pathway in the context of this review and my leadership team has already met [to] consider the findings,” Mr McEwan said in the email.The major banks – Commonwealth Bank, Westpac, ANZ and National Australia Bank – have each pledged to support the Paris Climate Agreement and phase out exposure to thermal coal by the end of the decade.Australian Conservation Foundation chief executive Kelly O’Shanassy met with ANZ’s head of sustainability Ben Walker on Tuesday to discuss the group’s demands, where he similarly pledged to consider the IEA’s report as one factor in the bank’s future climate policies.“The IEA has been a bastion of the fossil fuel industry for so long. To come out in the way they have is a real game changer,” Ms O’Shannassy said. “What we were asking for a few years ago with coal has now by and large been committed by the banks. Now, gas is the new frontier.”