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, 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).

For Westpac NZ to reduce our emissions, we must be able to understand our greenhouse gas (GHG) emissions and where we can make impactful change. Our GHG emissions come from both operational and financed emissions.

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 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  home loan customers.

Operational emissions are associated with our day-to-day running of the business. Our highest operational emissions sources are air travel, electricity and our vehicle fleet. During FY24, key achievements in managing operational emissions include:

• Further conversion of our full vehicle fleet, with electric and plug-in-hybrid vehicles comprising 97% of our total fleet as at 30 September 2024
• Moved to a new and more energy efficient corporate site in Wellington, with sustainable features including LED lighting and more efficient air conditioning units.

The assessment of our GHG emissions is summarised in the below diagram.

For details on our 2024 performance, please see the Metrics and targets section in our 2024 Climate Report.