Climate action.

At Westpac NZ we recognise that climate change is a complex problem that requires a carefully balanced approach of mitigation and adaptation to its impacts. Our purpose of creating better futures together is paramount to the way we do business. We understand how important taking action is to mitigate climate change and transition Aotearoa to a low emissions economy.

As outlined in the Westpac Group Climate Change Position Statement and Action Plan (PDF) , Westpac Group is committed to reducing the Group’s direct operational and financed emissions in line with a 1.5°C pathway to net-zero by 2050. However, climate change isn’t the only environmental issue facing Aotearoa. Degradation of our natural resources and systems (often referred to as natural capital) is an emerging risk that poses both risks and opportunities to our business, and our customers and communities. Protecting and restoring natural capital will be a vital part of our transition to a low emissions economy. We have a growing role in supporting nature positive environmental outcomes.

Recognising the links between climate change, nature and human rights, Westpac Group has also released our first Natural Capital Position Statement (PDF) and updated our Human Rights Position Statement (PDF).

As a financial institution, financed emissions are our greatest source of emissions and therefore where we have the biggest potential to reduce our climate impact. Tracking our financed emissions is essential as it informs our approach to supporting our customers in reducing their emissions and our exposure over time.

Financed emissions are indirect emissions that are linked to our lending activities. For us, these are the greenhouse gas (GHG) emissions of our lending customers, including the emissions associated with the activities of institutional, commercial and small to medium business customers along with the emissions associated with the household energy use of mortgage customers.

We estimate our Scope 1 and 2 financed emissions to be 5,833,229 tCO₂e for 2023. This covers 99.65% of our residential mortgages portfolio and 95.72% of our business lending portfolio (which includes commercial real estate).

While our greatest exposure comes from our residential mortgages portfolio, the attributed financed emissions are relatively low at 1.14%. Whereas our agriculture, forestry and fishing sector continue to make up the largest portion of our financed emissions at 61%. Therefore, we've set a specific Net-Zero Banking Alliance target for our agriculture sector.

Operational emissions are associated with our day-to-day running of the business. We have been measuring and reporting our operational emissions since 2008. Our current target commits us to reduce our operational GHG emissions 30% by 2025 from a 2019 baseline and to offset our residual operational emissions with New Zealand native forestry credits. This target includes Scope 1, 2 and 3 mandatory emissions.