Home > ANZ’s secret plan to cut thermal coal leaves Westpac out in the cold

ANZ’s secret plan to cut thermal coal leaves Westpac out in the cold

6 December 2019

6 December 2019

ANZ has internal plans to cut thermal coal mining exposure by 75% by March 2024.*

While this is a welcome ambition, ANZ has not confirmed the targeted 75% reduction officially in public policy.

Take a moment to tell ANZ to publicly confirm its secret plans to phase down thermal coal mining and to go further and align itself with the climate goals of the Paris Agreement.

Pending a material commitment from ANZ, Westpac is the only major Australian bank without a publicly revealed strategy to phase down exposure to thermal coal.

Unfortunately ANZ’s internal strategy isn’t all good news. For example, it also plans to increase metallurgical coal mining exposure despite the need for industrial emissions to fall substantially over the coming decades in line with the Paris Agreement. We’ve included all the relevant points in a response to Westpac and ANZ.

Take a moment to recognise the progress made by ANZ and call on Westpac to make a coal exit commitment!

Name*
First Last
Email*
Address
Country
Postcode*
Subject
I am a customer of:
I am a shareholder of:
- ANZ
- Commonwealth Bank
- NAB
- Westpac
Your message to ANZ
Dear ANZ, I’m writing to acknowledge your internal strategy to reduce thermal coal mining exposure by 75% by 2024, to encourage you to take the action necessary to ensure this target is met and to align your activities with the climate goals of the Paris Agreement. Whilst news of this internal strategy is welcome, I am unaware of any material commitment to achieve the targeted 75% reduction. I request that you clarify, in a public policy document, that this target will be achieved, including the relevant accountability mechanisms in place to ensure it is. A material commitment to this target would be a positive step. It is imperative that we do everything possible to hold global warming to 1.5ºC. The decisions of major financial institutions will have a huge say in whether we achieve this critical goal. Research by Climate Analytics points to a need for OECD countries to have phased out coal power completely by 2031, while investors worth US$35 trillion have called for coal power to be phased out by 2030 in OECD countries, a target which Commonwealth Bank has already committed to. I want to hear ANZ’s plans for thermal coal beyond 2024, which must match or better the commitments made by Commonwealth Bank. I am also unhappy that ANZ is still willing to entertain the idea that any new fossil fuel project could be considered compatible with the Paris Agreement. The Intergovernmental Panel on Climate Change clearly shows we need to reduce all fossil fuels, starting immediately, in order to stand the best chance of limiting global warming. Even the head of the International Energy Agency has said we can not afford to build any new CO2 emitting infrastructure if we want to keep global warming below 2ºC, let alone the much safer 1.5°C limit. I understand that ANZ also plans to increase metallurgical coal mining exposure despite the need for industrial emissions to fall substantially over the coming decades in line with the Paris Agreement. I note that ANZ has not set any limits or targets with regards to its metallurgical coal mining exposure, nor any targets for its overall coal exposure. I want to hear what you are planning to do on both of these points. I look forward to ANZ’s material, public commitment to reducing thermal coal mining exposure and your plans regarding the above points. Sincerely,
Your message to Westpac
Dear Westpac, I’m writing to make sure you’re aware of just how far you are falling behind your competitors on climate change action. I urge you to better the commitments from Australia’s other three major banks. In light of today’s news that ANZ has an internal plan to reduce thermal coal exposure, Westpac has now fallen way behind as the only big four bank without a known plan to phase down thermal coal exposure. This is out of line with what customers, shareholders and the public expect. It is imperative that we do everything possible to hold global warming to 1.5ºC. The decisions of major financial institutions will have a huge say in whether we achieve this critical goal. As the only bank to not commit to phasing down lending to thermal coal and with Westpac's climate policy update fast approaching, you now have an opportunity to once again lead on climate policy by not just matching the other banks, but doing even better! I urge you to not just set a thermal coal exit plan consistent with the Paris Agreement, but commit to not funding projects that expand the scale of the fossil fuel industry. I am also unhappy that Westpac is still willing to entertain the idea that any new fossil fuel project could be considered compatible with the Paris Agreement. The Intergovernmental Panel on Climate Change clearly shows we need to reduce all fossil fuels, starting immediately, in order to stand the best chance of limiting global warming. Even the head of the International Energy Agency has said we can not afford to build any new CO2 emitting infrastructure if we want to keep global warming below 2ºC, let alone the much safer 1.5°C limit. Westpac must rule out finance to new fossil fuel projects and expansions and withhold finance to companies that are actively seeking to expand the scale of the fossil fuel industry. I want to hear what you are planning to do on these points that is consistent with the Paris Agreement and will match or better the commitments made by the other big three banks. Sincerely,
Yes, I want to hear more from Market Forces about this campaign
- Yes

*See https://www.abc.net.au/news/2019-12-06/anz-to-slash-lending-to-coal-projects-leaked-document-reveals/11764898