Westpac’s annual results, released today, reveal the bank has weakened its approach to deforestation.
The bank’s deadline for achieving its earlier no deforestation commitment was looming.
The Australian Conservation Foundation welcomed Westpac’s 2023 announcement that it would be the first Australian bank to set a no deforestation commitment for beef, sheep and dairy.
But the bank today announced it would ‘no longer require’ a formal no deforestation commitment but instead ‘develop practical ways we can help customers manage deforestation risk effectively.’
“As banks increasingly recognise the nature and climate-related risks of deforestation, it’s disappointing to see Westpac loosen its approach while Australia’s deforestation problem continues to grow,” said ACF’s corporate campaigner Jonathan Moylan.
“This backdown is a slap in the face for Westpac customers and investors who don’t want the bank to be linked to the destruction of koalas’ and greater gliders’ homes.
“This move raises questions about Westpac’s net zero commitment, along with its ability to accurately report emissions if it is not monitoring deforestation rates.
“With the upcoming COP30 being touted as an opportunity to reduce financial flows to harmful practices like deforestation, banks should be raising their ambition, not lowering it.”
ACF investigations have found multiple instances of deforestation on properties financed by Westpac, including the destruction of mature koala habitat in the Desert Uplands region in Central West Queensland.
Last month ANZ and NAB shareholders filed Australia’s first bank shareholder resolutions on deforestation, calling on their banks to disclose how much they lend to customers involved in deforestation and set a strategies to stop financing landclearing.
ANZ and NAB will be required to respond to those shareholder resolutions on deforestation at their annual general meetings in December.
Legal opinion by Sebastian Hartford-Davis and Zoe Bush in 2023 concluded failure on the part of company directors to identify, manage and disclose material nature-related risks may lead to them being found in breach of their duties of care and diligence.
ACF will have nature and climate campaign team members at COP30 in Brazil.
Contact details:
Josh Meadows, 0439 342 992, [email protected]