Commbank – Australia’s second biggest supporter of dirty fossil fuels
Lending in Australia since 2008…
Has Commbank fulfilled it’s commitments on two degrees?
Commonwealth Bank has publicly committed to taking action to support the international aim of limiting global warming to less than 2°C above pre-industrial levels. But as the scorecard shows, the bank’s recent activity has been completely inconsistent with that commitment.
A two degree warming limit gives us a very strict carbon budget to work within, meaning 80% of known fossil fuel reserves must stay underground if we are to have even a 75% chance of not exceeding the limit.
What does this mean for Commbank? Well the obvious place to start is excluding new investments that expand the fossil fuel industry. Beyond this, the bank needs to reduce its exposure to the sector by 2030 and become coal-free in five years.
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How is Commonwealth Bank expanding fossil fuels?
Despite its two degree commitment, Commbank continues to loan to companies and projects that are expanding the fossil fuel industry.
One of the most shocking examples of Commbank’s disregard for their two degree commitment came in November 2015, when the bank loaned $49 million to a new deepwater oil drilling project. The new Heidelberg field sits 1620m below sea level around 225km off the Louisiana coast.
That makes it a relatively close neighbour to the Horizon deepwater oil project, where an explosion in 2010 caused one of the worst environmental disasters in recent history.
Find out more about the extent and impacts of banks financing fossil fuels, compare the lending positions of different banks and learn more about how to switch to a bank that aligns to your values.