The IPCC Sixth Assessment Report addresses the most up-to-date physical understanding of climate change, bringing together latest advances in climate science and global climate simulations.

Climate change is widely recognised as a systemic financial risk. NAB is expected to manage climate risk and make public disclosures in line with the Task Force on Climate-related Financial Disclosures’ recommendations.

We are adapting how we manage our portfolio, aligned with the Paris Agreement, striving to keep global temperature increases to no more than 1.5 degrees Celsius above pre-industrial levels while supporting security of energy supply in Australia and New Zealand and working with customers, related suppliers and their employees and communities in which they operate.

NAB is the only Australian bank to have signed the UN Environment Programme Finance Initiative Principles for Responsible Banking’s Collective Commitment to Climate Action. This commits us, within three years of signing up (by November 2022), to set and publish sector-specific, scenario-based targets for Paris Agreement portfolio alignment.

As we’ve said previously, NAB will review our targets each year against the latest global climate scenarios and relevant technology developments.