Westpac is moving ahead of its peers on nature protection, releasing a new position on nature-related risks and opportunities and an update on its efforts to address customer deforestation, the Australian Conservation Foundation said.
The bank's sustainability report, released today, was accompanied by a new position on nature-related risks and a Nature Action Plan, the first among Australia's big banks.
While not going as far as restricting finance to agribusiness customers engaging in any deforestation, the bank has set requirements that customers with more than A$3 million in lending exposure must align with its deforestation mitigation hierarchy. This places avoiding deforestation as the priority outcome, followed by the reduction of impacts.
The bank assessed more than 2,000 agribusiness customers on their management of deforestation risk, finding just under half had a 'comprehensive' approach.
"Importantly, Westpac's definitions of forest and deforestation are credible and science aligned," said Max Hamra, ACF's Policy Analyst - Corporate Responsibility.
"Westpac should quickly enforce its new customer requirements in the first half of 2027 and escalate cases where customers are failing to ensure positive outcomes for nature.
"Misalignment with customer requirements must have consequences. We will continue to engage with the bank on the implementation of its requirements.
"It's excellent to see the bank backing farmers doing the right thing and helping the industry transition to nature-friendly farming, including providing education on natural capital. This is important work to better integrate the protection of nature into financial and agricultural systems.
"Westpac's new nature position also stipulates its commitment to support the Kunming-Montreal Global Biodiversity Framework vision for 2050. ACF welcomes this commitment and encourages the bank to go one better and support the 2030 goal to halt and reverse biodiversity loss and put nature on a path to recovery."
The bank recognises that 'nature and biodiversity are in decline faster than at any time in human history', and that 'when (natural) systems are degraded, it can reduce the resilience of our and our customers' operations.'
"Westpac's Australian peers should take note of these statements and the progress the bank has made, which is the result of significant work to improve its management of nature risk," Mr Hamra said.
Pic by Liv Casben
