(Reuters) – Australia and New Zealand Banking Group Ltd (ANZ.AX) said on Friday it had earmarked 100 billion Australian dollars ($67.63 billion) to help customers reduce carbon emissions by 2030, as it seeks to accelerate its transition to net zero.
The country’s fourth-largest lender said it was on track to set targets for nine priority sectors by the end of the decade, including oil and gas, to ensure that at least 75 % of its portfolio emissions were on a net-zero trajectory by the end of 2024.
With global investors’ attention focused heavily on climate change, banks have come under scrutiny for their links to fossil fuel projects. They have been under pressure to set targets to cut emissions and increase investment in clean energy projects.
ANZ has said it will reduce its Scope 1 and 2 greenhouse gas emissions by 85% by 2025 and 90% by 2030. It previously had a target of reducing those emissions by 24% by by 2025 and 35% by 2030, respectively.
It also said it would reduce the exposure of its highest-emitting clients who do not improve their emissions transition plans by 2025.
ANZ, a member of the Net-Zero Banking Alliance (NZBA), said it was on track to end all direct lending to thermal coal mining well ahead of its target.
The NZBA is a coalition of nearly 100 banks representing nearly half of global banking assets. Members commit to aligning their loan and investment portfolios to net-zero emissions by 2050.
In July, Westpac unveiled plans to cut its lending to coal, oil and gas companies by almost a quarter by 2030.
($1 = 1.4786 Australian dollars)
(Reporting by Tejaswi Marthi and Jaskiran Singh in Bengaluru; Editing by Rashmi Aich)
