focus on sustainability in NZ
As the risks of climate change are increasingly recognized and accepted, idea banks can also act as a catalyst for everyone to reduce emissions and preserve our natural environment by allocating capital for environmental and social outcomes.
“Banks are exposed to climate-related risks through their loans and investments… There are opportunities for banks to play a role in building a more sustainable future. “
Like many industries, banks have worked hard to understand the potential impact of climate change on their businesses.
Most banks, including ANZ, strive to understand climate risk, and as more data is entered, they are increasingly positioned to act and influence change. This work will continue to improve as the risk becomes better known and policies are developed to mitigate that risk.
Banks are exposed to climate-related risks through their loans and investments. As we begin to better understand these risks, we occupy a key position in society to help individuals and businesses understand their own climate challenges.
But this goes hand in hand with the growing awareness that there are opportunities for banks to play a role in shaping a more sustainable future.
At first, the link between business and climate change may not seem obvious – as bankers we have always been able to manage financial risk.
Climate change is now widely recognized as a major financial risk.
We understand data and risk intimately, we are good at discussing with our clients their finances and their risks and opportunities.
ANZ is New Zealand’s largest bank – we have a relationship with one in two New Zealanders. It gives us a huge opportunity to make changes by leveraging those relationships, getting our skin in the game, and helping people make the transition to a less carbon intensive world.
Promoting environmental sustainability is now firmly one of our key priorities and ANZ’s climate strategy focuses on three areas:
- Help our clients by encouraging them to identify climate risks and opportunities, create transition plans and publicly report on their progress;
- Support industries that are making the transition to help grow the economy;
- Reduce our own impact by managing and reducing emissions from our own operations.
The first is by far the most important. We help clients identify the risks associated with their situation and plan to minimize the risk or transition to a more sustainable business model.
We also look at the physical risks of climate change, such as extreme weather events, and their impact on businesses and individuals, including their impact on property owners in different geographies of New Zealand.
At ANZ New Zealand, we know that 20 of our existing customers are on ANZ’s Top 100 Global Issuers list and we’ve already engaged with the 20 to get a feel for their plans for the transition to a net zero economy. , as well as the management of their climate-related risks and opportunities.
We have identified 15 other companies that we will collaborate with outside of this list. We believe that an honest and meaningful engagement with these industries that change and modify their operations will grow our economy and help facilitate the change we all need to make to varying degrees.
In many cases, we see that this transition creates new opportunities and we also help clients identify them and make the most of them.
For example, the conscious consumer brings about significant changes in the demand for products and services. Consumers want to support producers who “do good” while providing quality products and services.