Ameer Randolph
Bendigo Bank is one of Australia's medium-sized banks that has publicly opposed investing in fossil fuels. The bank has a climate strategy and nature action plan that guides them to achieve four outcomes, including effective risk management, building climate-resilient customers and communities, reducing emissions and impacts on nature, and growing trust through transparent disclosure. Bendigo Bank does not provide finance directly to projects in the coal, coal seam gas, crude oil, natural gas, and native forest logging sectors. However, they may provide equipment finance to support a customer's backup diesel generator. The bank's commitment to minimizing environmental harm and reducing its carbon footprint has attracted environmentally conscious customers.
| Characteristics | Values |
|---|---|
| Policy on lending to fossil fuel projects | Bendigo Bank does not lend directly to projects in the coal and coal seam gas sectors. It also does not provide finance directly to large-scale electricity generation in the coal, coal seam gas, crude oil, natural gas, and native forest logging sectors. |
| Public stance on fossil fuel investments | Bendigo Bank has publicly opposed investing in coal and gas projects, becoming the first major bank to do so. |
| Alignment with Paris Agreement | Bendigo Bank has failed to back the Paris Agreement for two consecutive years by not explicitly stating its support for the climate goals set by the agreement. |
| Environmental initiatives | Bendigo Bank offers cheaper home loans and personal loans with rates starting from 4.99% for customers building or renovating homes using energy-efficient products. |
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What You'll Learn
Bendigo Bank's opposition to investing in coal and gas projects
Bendigo and Adelaide Bank has become the first major Australian bank to publicly oppose investing in coal and gas projects, joining a number of large superannuation funds. The bank's executive, Marnie Baker, stated that the company is committed to minimising environmental harm, including the operations of the businesses it invests in. She further clarified that the bank does not lend to companies for whom the core activity is the exploration, mining, manufacture, or export of thermal coal or coal seam gas.
In line with this commitment, Bendigo Bank has a policy of not providing direct financial support to projects or large-scale electricity generation in the coal, coal seam gas, crude oil, natural gas, and native forest logging sectors. For example, while the bank may provide equipment finance to support a customer's backup diesel generator, it does not finance grid-connected fossil fuel electricity generation.
Bendigo Bank's stance on coal and gas investments has been well-received by environmentally conscious individuals and organisations. Thousands of Australians have chosen to bank with Bendigo due to its position on not investing in fossil fuels. Additionally, Australian Ethical Investments chief executive Phil Vernon welcomed the decision and encouraged more funds to limit their exposure to fossil fuel energy companies.
However, there has also been criticism of the reduced investment in mining companies by major financial institutions, with some arguing that it would negatively impact Australia's economy. Despite this, Bendigo Bank's decision to oppose investing in coal and gas projects demonstrates its commitment to environmental responsibility and its recognition of the importance of addressing climate change.
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Bendigo Bank's commitment to minimising environmental harm
Bendigo Bank has made a public commitment to minimising environmental harm. In 2014, it became the first major Australian bank to oppose investing in coal and gas projects, joining several large superannuation funds in this pledge.
Bendigo Bank's executive Marnie Baker affirmed the company's stance:
> Specifically, the bank does not lend to companies for whom the core activity is the exploration, mining, manufacture or export of thermal coal or coal seam gas.
The bank has a policy of not providing finance directly to projects or large-scale electricity generation in the coal, coal seam gas, crude oil, natural gas, and native forest logging sectors. However, it may provide equipment finance to support a customer's backup diesel generator.
Bendigo Bank recognises the need to balance the energy requirements of its customers and the communities it serves with environmental sustainability. It acknowledges that both individuals and businesses have a carbon footprint and that many of its customers rely on fossil fuels directly or indirectly. To address this, the bank actively makes decisions to reduce and offset its carbon footprint and assists its customers in doing the same by offering green products and services.
The bank's Climate & Nature Action Plan aims to achieve four key outcomes:
- Climate-integrated business: Effective and integrated risk management and opportunity realisation throughout the bank's operations.
- Climate-resilient customers and communities: Building preparedness for physical and transitional impacts in the communities served by the bank.
- Reduced emissions and natural impact: Achieving real-world reductions in emissions and impacts on nature within the bank's business and with its customers.
- Trust: Growing trust through governance, authentic engagement, and transparent disclosure.
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Bendigo Bank's failure to support the Paris Agreement
Bendigo and Adelaide Bank has positioned itself as environmentally conscious. The bank does not provide finance directly to projects or large-scale electricity generation in sectors such as coal, coal seam gas, crude oil, natural gas, and native forest logging. It also does not lend to companies for whom the core activity is the exploration, mining, manufacture, or export of thermal coal or coal seam gas.
However, despite its stance on fossil fuels, Bendigo Bank has failed to explicitly support the Paris Agreement's climate goals. At the bank's annual general meetings in 2018 and 2019, Chairman Robert Johanson and incoming Chairman Jacquie Hey avoided answering questions regarding the bank's position on the Paris Agreement. This lack of commitment to the Paris Agreement is concerning, especially since Bendigo Bank has significant exposure to the agricultural sector, which is vulnerable to the impacts of climate change.
Bendigo Bank's Climate Strategy outlines four key outcomes to address climate change:
- A climate-integrated business: Effective and integrated risk management and opportunity realization throughout the bank's operations.
- Climate-resilient customers and communities: Building preparedness for physical and transitional impacts of climate change in the communities served by the bank.
- Reduced emissions and natural impact: Achieving real-world reductions in emissions and impacts on nature through the bank's operations and by assisting customers in their transition.
- Trust: Growing trust through governance, authentic engagement, and transparent disclosure.
While Bendigo Bank's Climate Strategy aligns with the spirit of the Paris Agreement, the bank's failure to explicitly support the agreement raises questions about its commitment to addressing climate change. This lack of support could be a missed opportunity to strengthen its position as an environmentally responsible financial institution.
In conclusion, Bendigo Bank's reluctance to openly endorse the Paris Agreement undermines its efforts to be recognized as a leader in environmental sustainability within the banking industry. By not explicitly supporting the Paris Agreement, Bendigo Bank falls short of the expectations of its customers and stakeholders who value environmental stewardship. To rebuild trust and confidence, the bank should provide a clear and unequivocal statement of its position on the Paris Agreement and outline concrete actions that demonstrate its dedication to combating climate change.
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Bendigo Bank's lending to projects in the coal and coal seam gas sectors
Bendigo Bank acknowledges that its customers and the communities it works with require access to a variety of energy sources and fuels, and that individuals and businesses have a carbon footprint. The bank also understands that many of its customers rely on fossil fuels both directly and indirectly.
Bendigo Bank's policy is not to lend directly to projects or large-scale electricity generation in the coal, coal seam gas, crude oil, natural gas, and native forest logging sectors. The bank has taken a pragmatic approach, stating that it makes no sense to broaden its footprint by lending to projects in the coal and coal seam gas sectors.
The bank aims to reduce its environmental impact and help its customers and communities do the same. It offers green products and services and implements initiatives to reduce waste, save energy, water, and paper, and improve energy efficiency. Bendigo Bank is also working to reduce emissions and maintain its carbon-neutral status.
Bendigo Bank is committed to supporting its customers, communities, and stakeholders in preparing for and adapting to the impacts and opportunities presented by climate change. The bank's Climate Strategy and Nature Action Plan aim to deliver effective risk management, climate-resilient communities, reduced emissions, and increased trust through transparent disclosure.
Bendigo Bank also offers cheaper home and personal loans for customers building or renovating homes using energy-efficient products, with rates starting from 4.99%.
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Bendigo Bank's Climate & Nature Action Plan
Bendigo and Adelaide Bank has taken a strong stance on environmental issues and has committed to reducing its impact on the environment. The bank's Climate & Nature Action Plan is a comprehensive strategy that outlines four key outcomes to address climate change and promote sustainability.
Firstly, the plan aims to create a climate-integrated business by implementing effective risk management and seizing opportunities related to climate change. This involves integrating climate considerations into all aspects of the bank's operations and making conscious decisions to reduce and offset its carbon footprint.
Secondly, the bank focuses on building climate resilience among its customers and communities. This includes providing support and guidance to help individuals and businesses adapt to the changing climate and reduce their environmental impact. The bank offers cheaper home loans and personal loans with rates starting from 4.99% for customers who wish to build or renovate their homes using energy-efficient products.
Thirdly, the plan targets reduced emissions and natural impact. This entails not only minimizing the bank's own emissions but also helping customers transition to more sustainable practices. Bendigo and Adelaide Bank does not provide direct financing to projects or large-scale electricity generation in sectors such as coal, coal seam gas, crude oil, natural gas, and native forest logging. Instead, the bank offers green products and services to encourage customers to adopt more sustainable practices.
Lastly, the plan emphasizes the importance of trust and transparency. Bendigo and Adelaide Bank strives to grow trust through authentic engagement, transparent disclosure, and effective governance. By openly communicating its climate strategies and actions, the bank aims to build stronger relationships with its customers and the communities it serves.
Overall, Bendigo and Adelaide Bank's Climate & Nature Action Plan demonstrates a commitment to addressing climate change and fostering sustainable practices. By integrating climate considerations into its business model and helping customers make more environmentally conscious decisions, the bank plays a proactive role in mitigating the impacts of climate change.
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Frequently asked questions
No, Bendigo Bank does not invest in fossil fuels. They do not lend to projects in the coal and coal seam gas sectors.
Bendigo Bank's policy is to not provide finance directly to projects or large-scale electricity generation in sectors such as coal, coal seam gas, crude oil, natural gas, and native forest logging.
Bendigo Bank is committed to minimising environmental harm and has a Climate & Nature Action Plan that aims to build climate-resilient customers and communities, reduce emissions, and grow trust through transparent disclosure.
Bendigo Bank has not publicly supported the Paris Agreement's climate goals. At their 2019 annual general meeting, the company's leadership avoided answering questions on whether they formally backed the agreement.
