Environmental sustainability

Stakeholder view and relevance to NAB

Our Environmental Agenda focuses on three key areas:

  • Climate change
  • Biodiversity loss and ecosystem degradation
  • Resource scarcity

Through our materiality assessment and ongoing engagement, regulators, ESG analysts, investors and benchmarking initiatives (like the DJSI and CDP) continue to request disclosure of information relating to our management of risks and opportunities associated with these focus areas.

This year, our stakeholders have sought specific information on our own energy usage and GHG emissions, as well as information on:

  • Products and services that help to address climate change and assist in the orderly transition to a low-carbon economy; and
  • Lending book exposure to carbon risk in carbon intensive sectors; and
  • Changes to lending exposures in carbon intensive sectors over time.

We believe it is important to lead by example in making sure our direct footprint is minimised, while also drawing on our own learning to support our customers in order to contribute towards the orderly transition to a low-carbon economy.

How we are responding

  • In November 2015, NAB made five climate change commitments that underpin our role in supporting the transition to a low carbon economy. Since then, we have progressed our thinking about the risks and opportunities of operating in a 2°C world and started to deliver on our commitments.
  • We were recognised as a ‘Green Bond Pioneer’ by the Climate Bonds Initiative and London Stock Exchange in February 2016 for NAB’s work in developing the Australian green bond market.
  • We have made additional carbon risk disclosures available in our 2016 Full Year Results Investor Presentation and in the full 2016 Dig Deeper report. We participated in climate-related industry forums and consultation processes related to climate policy development that have been run at many levels of government from national to local, particularly in relation to the areas of climate and adaptation finance.
  • We developed a new set of post-2016 environmental performance targets. This included a science-based GHG emissions reduction target for our operations (the first set by an Australia company).
  • Initiated ongoing research partnerships with CSIRO, Dairy Australia and the Australian Wine Research Institute to identify appropriate natural capital indicators to use in identifying the link between good natural capital management and financial performance over time.
  • We have also established an internal Natural Value Risk Modelling Working Group to look at how we use this data and information to price natural capital risk into agribusiness lending.
  • This year, we reached the end of our 2014-2016 environmental performance targets. Five of our six 2014-2016 targets have been met.
  • For further information on our Environmental Agenda, see the full 2016 Dig Deeper report.

Our Priorities

Read about the work we are doing to build:

  • Financial inclusion and resilience
  • Social cohesion
  • Environmental wellbeing

Environmental approach

We’re committed to understanding and managing the impacts and dependencies of our business on the environment.