NAB responds to BankTrack October 2021 “Equator Compliant Climate Destruction: How banks finance fossil fuels under the Equator Principles Report”
NAB is responding to a recent report by BankTrack regarding the bank’s financing of fossil fuel projects. Equator Principles reporting does not reference the value of finance provided by banks.
Since 30 September 2016, NAB’s lending exposure to fossil fuel sectors (coal, oil and gas extraction; and coal-fired, gas-fired, and mixed fuel power generation) has reduced by 26.6% or A$2.1 billion.
During the same period, NAB lending exposure to clean energy (wind, hydro and mixed renewables) has increased by 110% or A$2.68 billion. Over the same period, NAB provided a cumulative total of $7.107bn in finance to renewable energy projects.
NAB’s portfolio of project-related clean energy financing plays a key role in supporting Australia and New Zealand’s growth. NAB is number one Australian bank for global renewables transactions and the 23rd largest lender to the renewable energy industry in the world in 2021 [1].
While the BankTrack report references 13 projects financed by NAB, during the period of the BankTrack report NAB reported a total of 84 projects including to clean energy, and economic and social infrastructure such as roads, schools, hospitals, and digital infrastructure.
Where NAB provides project-related financing, NAB undertakes Equator Principles due diligence as part of its overall credit risk and due diligence assessment process.
[1] Rankings based on IJGlobal League Table, MLA, Renewables, 12 months ending 31 September 2021
About the Equator Principles
NAB became a signatory to the Equator Principles (“EP”) on 25 October 2007.
They are a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in financing of specific projects.
They are primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making by member financial institutions.
Transactions which trigger EP requirements are reported by NAB to the Equator Principles Association (EPA). This information is made publicly available by the EPA via its website.
EP statistics required to be reported to the EPA by EP financial institutions (EPFIs) includes the number of transactions as well sectors, categories, regions, countries and whether or not an independent review has been conducted.
Separate project name reporting includes project name, sector, host country and year of financial close. Project name reporting requires client consent, and if client consent is not provided it must be noted in an EPFI’s reporting which is published by the EPA on its website.
