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Westpac’s fossil fuel lending

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$0 billion

loaned to dirty fossil fuels globally since 2008

Is your bank funding climate change?

Tell Westpac its Paris Pledge means no new fossil fuels

Westpac, the Australian bank most exposed to coal power has committed to exit thermal coal by 2030.

This is a big win for hundreds of customers and shareholders who put Westpac on notice, lobbied outside local branches, put climate in the spotlight at Westpac’s AGM and divested from their bank which all helped to push Westpac over the line.

While Westpac has said its future support for oil and gas will be in line with the Paris Agreement, we’re going to need to stay on the bank’s case to ensure they don’t finance any expansion of these sectors, which also need to decline if we’re to meet the 1.5ºC global warming limit.

Acknowledge Westpac’s important step, and tell them you’ll be keeping a close eye on whether it will align its lending with its Paris climate pledge.

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- a Westpac customer
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Subject
Your message to Westpac (customer)
To Westpac, I want to acknowledge the important step in the right direction Westpac has made by committing to reduce its exposure to thermal coal to zero by 2030. Your continued commitment, on paper at least, to the Paris Agreement is also positive, as long as it is followed up with action. As a customer, I will be closely watching your lending to fossil fuels, and will have no hesitation in publicly leaving the bank if Westpac drifts from the requirements outlined in the Paris climate agreement. In order to keep warming below 1.5 degrees, energy from gas must fall by 25% by 2030 and oil by 37% from a 2010 baseline according to the Intergovernmental Panel on Climate Change, which means Westpac cannot lend to projects and companies that are expanding the fossil fuel industry and remain Paris-aligned. I was disappointed to learn that since committing to the Paris climate goals, Westpac has loaned $5.4 billion to coal oil and gas projects, including $846 million to projects that expand the scale of the industry. You have loaned 2.7 times more money to fossil fuels than renewable energy over that same time frame. This current lending practice is totally out of line with the Paris Agreement. I now expect Westpac to change your existing lending practices and stop lending to projects that expand the fossil fuel industry. Westpac must also address its corporate lending. Lending to companies whose business models rely on the failure of the Paris Agreement should be ruled out. Lending to companies whose projects you would not lend to undermines both your own policy and your Paris climate pledge. I am just one of many customers who have been watching your lending practices closely and I will continue to do so until Westpac demonstrates lending that aligns with your pledge to uphold the Paris Climate goals. Sincerely,
Your message to Westpac (shareholder)
To Westpac, I want to acknowledge the important step in the right direction Westpac has made by committing to reduce its exposure to thermal coal to zero by 2030. Your continued commitment, on paper at least, to the Paris Agreement is also positive, as long as it is followed up with action. As a shareholder, I will be closely watching your lending to fossil fuels, and will have no hesitation in publicly using my influence as a shareholder if Westpac drifts from the requirements outlined in the Paris climate agreement. In order to keep warming below 1.5 degrees, energy from gas must fall by 25% by 2030 and oil by 37% from a 2010 baseline according to the Intergovernmental Panel on Climate Change, which means Westpac cannot lend to projects and companies that are expanding the fossil fuel industry and remain Paris-aligned. I was disappointed to learn that since committing to the Paris climate goals, Westpac has loaned $5.4 billion to coal oil and gas projects, including $846 million to projects that expand the scale of the industry. You have loaned 2.7 times more money to fossil fuels than renewable energy over that same time frame. This current lending practice is totally out of line with the Paris Agreement. I now expect Westpac to change your existing lending practices and stop lending to projects that expand the fossil fuel industry. Westpac must also address its corporate lending. Lending to companies whose business models rely on the failure of the Paris Agreement should be ruled out. Lending to companies whose projects you would not lend to undermines both your own policy and your Paris climate pledge. I am just one of many shareholders who have been watching your lending practices closely and I will continue to do so until Westpac demonstrates lending that aligns with your pledge to uphold the Paris Climate goals. Sincerely,
Your message to Westpac (customer and shareholder)

To Westpac, I want to acknowledge the important step in the right direction Westpac has made by committing to reduce its exposure to thermal coal to zero by 2030. Your continued commitment, on paper at least, to the Paris Agreement is also positive, as long as it is followed up with action. As a customer and shareholder, I will be closely watching your lending to fossil fuels, and will have no hesitation in publicly leaving the bank if Westpac drifts from the requirements outlined in the Paris climate agreement. In order to keep warming below 1.5 degrees, energy from gas must fall by 25% by 2030 and oil by 37% from a 2010 baseline according to the Intergovernmental Panel on Climate Change, which means Westpac cannot lend to projects and companies that are expanding the fossil fuel industry and remain Paris-aligned. I was disappointed to learn that since committing to the Paris climate goals, Westpac has loaned $5.4 billion to coal oil and gas projects, including $846 million to projects that expand the scale of the industry. You have loaned 2.7 times more money to fossil fuels than renewable energy over that same time frame. This current lending practice is totally out of line with the Paris Agreement. I now expect Westpac to change your existing lending practices and stop lending to projects that expand the fossil fuel industry. Westpac must also address its corporate lending. Lending to companies whose business models rely on the failure of the Paris Agreement should be ruled out. Lending to companies whose projects you would not lend to undermines both your own policy and your Paris climate pledge. I am just one of many customers and shareholders who have been watching your lending practices closely and I will continue to do so until Westpac demonstrates lending that aligns with your pledge to uphold the Paris Climate goals. Sincerely,
Your message to Westpac (neither customer and shareholder)
To Westpac, I want to acknowledge the important step in the right direction Westpac has made by committing to reduce its exposure to thermal coal to zero by 2030. Your continued commitment, on paper at least, to the Paris Agreement is also positive, as long as it is followed up with action. I will be closely watching your lending to fossil fuels, and will have no hesitation in taking public action if Westpac drifts from the requirements outlined in the Paris climate agreement. In order to keep warming below 1.5 degrees, energy from gas must fall by 25% by 2030 and oil by 37% from a 2010 baseline according to the Intergovernmental Panel on Climate Change, which means Westpac cannot lend to projects and companies that are expanding the fossil fuel industry and remain Paris-aligned. I was disappointed to learn that since committing to the Paris climate goals, Westpac has loaned $5.4 billion to coal oil and gas projects, including $846 million to projects that expand the scale of the industry. You have loaned 2.7 times more money to fossil fuels than renewable energy over that same time frame. This current lending practice is totally out of line with the Paris Agreement. I now expect Westpac to change your existing lending practices and stop lending to projects that expand the fossil fuel industry. Westpac must also address its corporate lending. Lending to companies whose business models rely on the failure of the Paris Agreement should be ruled out. Lending to companies whose projects you would not lend to undermines both your own policy and your Paris climate pledge. I am just one of many community members who have been watching your lending practices closely and I will continue to do so until Westpac demonstrates lending that aligns with your pledge to uphold the Paris Climate goals. Sincerely,
Yes, I want to hear more from Market Forces about this campaign

Has Westpac fulfilled its Paris climate pledge?

Not yet.

Since Westpac publicly committed to act in support of international goals to limit global warming to less than 1.5°C above pre-industrial levels, it has sunk $5.4 billion into fossil fuel deals, including $846million in to projects that expand the scale of the industry.

In May 2020, Westpac updated its Climate Change Action Plan, committing to exit thermal coal exposure by 2030 and re-commiting to lend in line with the goals of the Paris Agreement.

This update is another nail in the coffin for the thermal coal industry, as Westpac joins the Commonwealth and Australia three major insurers to quit thermal coal by 2030.

The bank also appears to have made a subtle commitment to not finance new oil and gas projects, indicating that any financing of the sector from this point on will need to be compatible with the Paris Agreement. To meet the Paris climate goal of limiting global warming to 1.5ºC, energy from gas must fall by 25% by 2030 and oil by 37% from a 2010 baseline according to the IPCC.

Although stepping in the right direction, Westpac’s policy will only be worth the paper its written on if the bank reverses its disturbing history of lending to fossil fuels.

Scorecard since 2°C commitment

total lending to fossil fuels
$0 billion

Total lending to expansionary projects
$0 million

Policy to reduce fossil fuel exposure?
PARTIAL

Policy restricting fossil fuel lending?
PARTIAL

How has Westpac been expanding fossil fuels?

Westpac policy update in May 2020 appears to have made a subtle commitment to not finance new oil and gas projects, indicating that any financing of the sector from this point on will need to be compatible with the Paris Agreement. To meet the Paris climate goal of limiting global warming to 1.5ºC, energy from gas must fall by 25% by 2030 and oil by 37% from a 2010 baseline according to the IPCC.

This new policy should reverse a disturbing trend in Westpac’s recent lending activity. Since 2016 Westpac has loaned $5.4 billion to coal, oil and gas projects including $846 million to projects that expand the scale of the fossil fuel industry. Since commiting the the Paris Climate Agreement, Westpac has loaned 2.7 times as much money to fossil fuels as to renewable energy.

We are now calling on Westpac to apply the same principles to corporate customers as it has done to projects. In recent years, Westpac’s corporate lending has included deals such as:

$110 million to Woodside Energy in the 2nd half of 2019 that will help to open up more of Western Australia to dangerous gas extraction. The bank earned $2.8 million in fees for arranging this loan.
lending $315 million to Origin Energy, which plans to open up the Northern Territory to dangerous fracking.
$92 million to Whitehaven coal and $54 million to Santos, both of which have massive plans to expand the coal and gas sectors.
$32 million to Horizon Oil, the company embroiled in a corruption scandal after allegedly giving $15.4 million to a shell company owned by the Papua New Guinea Minister for Petroleum and Energy.

With @Westpac's move today, 2 of Australia's big-4 banks, and all 3 Aus major general insurers will now be exiting thermal #coal by 2030.

If you want your power station or mine open past then, it's going to get tough. #divest

See our full analysis: https://t.co/X82OpK79My pic.twitter.com/eNlHuIznOL

— Market Forces (@market_forces) May 4, 2020

Divestment stories

Want to share your divestment story?
Record a short video using your computer or phone (held sideways in landscape) and email us at [email protected]s.org.au so that we can help you share it.

Goodbye Bank of Melbourne and Westpac

As a medical specialist, I recognise the adverse health impacts of coal combustion and its central contribution to climate change. This is not a statement of ideology but purely a scientific one.

Any bank ignoring this can expect divestment action from their customers. We sent a letter of notice in 2017 but since then Bank of Melbourne/Westpac Group has increased lending to the fossil fuel sector with no discernible strategy to exit coal financing. We are now with a lender more aligned with our values as well as the Paris Agreement.

Dr Steven, Melbourne

Wave farewell Westpac

My partner and I have a medical background that is based on using best available science and evidence to protect people from harm and preventing illness by identifying and trying to change harmful behaviours, substances and legislation.

From this naturally follows that we have to accept current scientific evidence on the deadly impact of air-pollution, already killing over 8 million people every year, and climate change, the destructive forces of which we have experienced all too clearly this year in Australia and around the world.

We realized that both our default Superannuation and our bank were heavily invested in fossil-fuel companies through shares or loans and we decided that we could no longer let them use our money to finance something that has been proven to be as damaging, outdated and deadly as asbestos or tobacco. After writing to Westpac repeatedly yet without any change of their direction we moved our bank and divested our Super to fossil-free options.

In spite of this purely ethical and scientific decision we are currently reaping higher returns in our Super and paying lower interest-rates and bank-fees while no longer financing an outdated, dangerous and deadly industry with our money. Feels good.

Dr Steinvorth & Brigit Weld – Lismore

Westpac staff messages to Westpac decision makers

Market Forces has asked Westpac staff to complete an anonymous staff survey asking whether they support Westpac’s lending to coal, oil and gas. Below are some of the messages that Westpac staff wanted to send to Westpac.

Westpac needs to do better

Westpac used to be the world’s leading financial institution on sustainability. It’s one of the reasons I joined. We’ve slipped, and that diminishes my sense of shared purpose; of focus on mission; of One Team. We in Australia have just witnessed (many endured) the first undeniably attributable climate change event. Our millions of customers need us to do better.

Environment should guide our principles

Time to be bold

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Learn more

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.

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How the banks are using your money to expand fossil fuels

Westpac is still backing dirty coal!

Is your bank funding climate change?

Tell Westpac its Paris Pledge means no new fossil fuels

Has Westpac fulfilled its Paris climate pledge?

Scorecard since 2°C commitment

total lending to fossil fuels

Total lending to expansionary projects

Policy to reduce fossil fuel exposure?

PARTIAL

Policy restricting fossil fuel lending?

PARTIAL

How has Westpac been expanding fossil fuels?

Divestment stories

Westpac staff messages to Westpac decision makers

Send Westpac a sign

Learn more

How to switch banks

Compare your bank

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