Home > NAB confirms it will update stance on polluting oil and gas

NAB confirms it will update stance on polluting oil and gas

11 November 2020

11 November 2020

Today NAB released its sustainability report, failing to take the minimum steps needed now to align the bank’s finance activity with the Paris Agreement, while confirming it will update its stance on funding the dirty oil and gas sector by next year.

NAB’s funding for the oil and gas sector is wildly inconsistent with its stated support for the Paris Agreement.

From Jan 2016 – Dec 2019, NAB loaned $1.2 billion to 10 large Australian companies whose business plans rely on the failure of the Paris Agreement, and $1.1 billion to 12 projects that expand the fossil fuel industry enabling the release of 2.5 billion tonnes of CO₂, many of them oil or gas projects.(1)

This is despite there being no room for new oil and gas projects if we’re to achieve the Paris Agreement, according to mainstream climate science.

TAKE ACTION! As NAB considers its position on oil and gas, tell it that 1.5 degrees means no expanding the fossil fuel industry!

With regards to the update, NAB’s CEO Ross McEwan told a House of Representatives Economics Committee:

“I think we’ve got a lot of work to do to have a look at that whole issue and its impact across all of Australia and all of the constituent parts, including what energy sources Australia needs to have.”
Ross McEwan, CEO, National Australia Bank

McEwan’s words follow warnings in August from leading scientists at Australian universities about the role of gas in a Paris-aligned economy:

“To meet the upper Paris goal (‘well below 2C’), we must achieve net zero emissions by 2040-2050. This requires a rapid phase-out of existing fossil fuel infrastructure, leaving no room for expansion of the gas industry.“
25 leading scientists at Australian universities

Last week, NAB said it “expected” to exit thermal coal mining by 2030, the latest point that is considered aligned with the climate goals of the Paris Agreement. However, at the same time, the bank inexplicably retained its commitment to exit the sector five years too late, by 2035.

(1) https://www.marketforces.org.au/campaigns/banks-new/bigfourscorecard/

Take action

Tell NAB 1.5°C means no expansion of the oil and gas industry

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Your message to NAB (customer)
To NAB, Following your suite of annual reporting in 2020, I’m writing to express my severe disappointment with your lack of action on climate change and to seek commitments that will address my concerns. I have been made aware that your 2020 sustainability report states you will “complete a review of the Oil and Gas sector in 2021”. At present, NAB’s policies on, and finance for, oil and gas are completely at odds with your stated commitment to the Paris Agreement. In particular, I note you have failed to stop lending to new oil and gas projects or companies expanding this sector, and to set targets to reduce your exposure to this sector in line with the Paris Agreement. As a customer, I find these failures are particularly disappointing in light of my understanding that since 2016, NAB has loaned $1.2 billion to 10 large Australian companies whose business plans rely on the failure of the Paris Agreement, and $1.1 billion to 12 projects that expand the fossil fuel industry enabling the release of 2.5 billion tonnes of CO2, many of them oil or gas projects. It defies logic that you’re supposedly committed to the Paris Agreement, but that in April 2020 you funded a new 670km gas pipeline in Canada, and then in October 2020 you funded Santos, a company expanding the dirty gas industry. It is also bewildering that NAB plans to wait until next year to address these issues! Further, it was very disappointing to see NAB claim it “expects” to exit thermal coal mining by 2030 but not commit to this target. Why are you still committed to exit the sector five years later than needed under the Paris Agreement, when you can expect to do so by 2030? As a NAB customer, I expect you to immediately address these concerns. In particular, I am asking you to confirm you will: – No longer finance projects that expand the scale of the fossil fuel industry, or companies seeking to expand the scale of the fossil fuel industry, – Phase out your credit exposure to thermal coal to zero by no later than 2030, though preferably much earlier, and; – Phase out oil and gas exposure in line with meeting the uppermost goals of the Paris Agreement. Sincerely,
Your message to NAB (shareholder)
To NAB, Following your suite of annual reporting in 2020, I’m writing to express my severe disappointment with your lack of action on climate change and to seek commitments that will address my concerns. I have been made aware that your 2020 sustainability report states you will “complete a review of the Oil and Gas sector in 2021”. At present, NAB’s policies on, and finance for, oil and gas are completely at odds with your stated commitment to the Paris Agreement. In particular, I note you have failed to stop lending to new oil and gas projects or companies expanding this sector, and to set targets to reduce your exposure to this sector in line with the Paris Agreement. As a shareholder, I find these failures are particularly disappointing in light of my understanding that since 2016, NAB has loaned $1.2 billion to 10 large Australian companies whose business plans rely on the failure of the Paris Agreement, and $1.1 billion to 12 projects that expand the fossil fuel industry enabling the release of 2.5 billion tonnes of CO2, many of them oil or gas projects. It defies logic that you’re supposedly committed to the Paris Agreement, but that in April 2020 you funded a new 670km gas pipeline in Canada, and then in October 2020 you funded Santos, a company expanding the dirty gas industry. It is also bewildering that NAB plans to wait until next year to address these issues! Further, it was very disappointing to see NAB claim it “expects” to exit thermal coal mining by 2030 but not commit to this target. Why are you still committed to exit the sector five years later than needed under the Paris Agreement, when you can expect to do so by 2030? As a NAB shareholder, I expect you to immediately address these concerns. In particular, I am asking you to confirm you will: – No longer finance projects that expand the scale of the fossil fuel industry, or companies seeking to expand the scale of the fossil fuel industry, – Phase out your credit exposure to thermal coal to zero by no later than 2030, though preferably much earlier, and; – Phase out oil and gas exposure in line with meeting the uppermost goals of the Paris Agreement. Sincerely,
Your message to NAB (customer and shareholder)
To NAB, Following your suite of annual reporting in 2020, I’m writing to express my severe disappointment with your lack of action on climate change and to seek commitments that will address my concerns. I have been made aware that your 2020 sustainability report states you will “complete a review of the Oil and Gas sector in 2021”. At present, NAB’s policies on, and finance for, oil and gas are completely at odds with your stated commitment to the Paris Agreement. In particular, I note you have failed to stop lending to new oil and gas projects or companies expanding this sector, and to set targets to reduce your exposure to this sector in line with the Paris Agreement. As a customer and shareholder, I find these failures are particularly disappointing in light of my understanding that since 2016, NAB has loaned $1.2 billion to 10 large Australian companies whose business plans rely on the failure of the Paris Agreement, and $1.1 billion to 12 projects that expand the fossil fuel industry enabling the release of 2.5 billion tonnes of CO2, many of them oil or gas projects. It defies logic that you’re supposedly committed to the Paris Agreement, but that in April 2020 you funded a new 670km gas pipeline in Canada, and then in October 2020 you funded Santos, a company expanding the dirty gas industry. It is also bewildering that NAB plans to wait until next year to address these issues! Further, it was very disappointing to see NAB claim it “expects” to exit thermal coal mining by 2030 but not commit to this target. Why are you still committed to exit the sector five years later than needed under the Paris Agreement, when you can expect to do so by 2030? As a NAB customer and shareholder, I expect you to immediately address these concerns. In particular, I am asking you to confirm you will: – No longer finance projects that expand the scale of the fossil fuel industry, or companies seeking to expand the scale of the fossil fuel industry, – Phase out your credit exposure to thermal coal to zero by no later than 2030, though preferably much earlier, and; – Phase out oil and gas exposure in line with meeting the uppermost goals of the Paris Agreement. Sincerely,
Your message to NAB (neither customer nor shareholder)
To NAB, Following your suite of annual reporting in 2020, I’m writing to express my severe disappointment with your lack of action on climate change and to seek commitments that will address my concerns. I have been made aware that your 2020 sustainability report states you will “complete a review of the Oil and Gas sector in 2021”. At present, NAB’s policies on, and finance for, oil and gas are completely at odds with your stated commitment to the Paris Agreement. In particular, I note you have failed to stop lending to new oil and gas projects or companies expanding this sector, and to set targets to reduce your exposure to this sector in line with the Paris Agreement. These failures are particularly disappointing in light of my understanding that since 2016, NAB has loaned $1.2 billion to 10 large Australian companies whose business plans rely on the failure of the Paris Agreement, and $1.1 billion to 12 projects that expand the fossil fuel industry enabling the release of 2.5 billion tonnes of CO2, many of them oil or gas projects. It defies logic that you’re supposedly committed to the Paris Agreement, but that in April 2020 you funded a new 670km gas pipeline in Canada, and then in October 2020 you funded Santos, a company expanding the dirty gas industry. It is also bewildering that NAB plans to wait until next year to address these issues! Further, it was very disappointing to see NAB claim it “expects” to exit thermal coal mining by 2030 but not commit to this target. Why are you still committed to exit the sector five years later than needed under the Paris Agreement, when you can expect to do so by 2030? I expect NAB to immediately address these concerns. In particular, I am asking you to confirm you will: – No longer finance projects that expand the scale of the fossil fuel industry, or companies seeking to expand the scale of the fossil fuel industry, – Phase out your credit exposure to thermal coal to zero by no later than 2030, though preferably much earlier, and; – Phase out oil and gas exposure in line with meeting the uppermost goals of the Paris Agreement. Sincerely,
Yes, I want to hear more from Market Forces about this campaign