Home > NAB mealy-mouthed on 2030 thermal coal exit

NAB mealy-mouthed on 2030 thermal coal exit

5 November 2020

5 November 2020

NAB’s full year results released today reveal the bank is “expected” to exit thermal coal mining by 2030, five years earlier than its inadequate official commitment to exit by 2035.

NAB’s announcement last year that it would exit thermal coal mining by 2035 drew widespread criticism for falling short of time frames necessary to hold global warming to 1.5ºC and investor expectations for the elimination of thermal coal.

Astonishingly, today the bank failed to shift its official 2035 commitment forward to 2030, meaning it’s still the only Australian bank willing to finance thermal coal beyond 2030.

The bank also failed to make commitments that would see it stop financing companies and projects that spell the failure of the Paris Agreement by expanding the fossil fuel industry.

Just two weeks ago, NAB loaned US$50 million to Santos, a company expanding the gas sector with projects including its highly controversial Narrabri Gas Project. Earlier this year, Santos’s board rejected a shareholder proposal to align capital expenditure and emission reduction plans with the Paris climate goals.

Climate commitments

In late 2015, when nearly 200 nations signed the Paris Agreement with an ambition to limit global warming to 1.5°C, Australia’s ‘big four’ banks — including NAB — all publicly championed the Agreement, promising to support the transition to a low carbon economy. NAB has since reiterated its support for the Paris Agreement on numerous occasions.

We support the transition to a low carbon economy, and will seek to manage our portfolio to align with the Paris Agreement goal of keeping global warming to less than two degrees Celsius, striving for 1.5 degrees Celsius above pre-industrial levels.
NAB, Sustainability Report 2019

Take action: tell NAB to align its lending with the Paris Agreement

Use the form below to send your message to NAB. If you aren’t a customer or shareholder of the bank, you can instead send a message to all four major banks here.

Name*
First Last
Email*
Country
Country
Postcode*
Phone Number
I am a…*
- NAB customer
- NAB shareholder
I would like to…*
- Give the bank one last chance
- Ask for information about ending business with the bank
I have the following products with this bank:*
- Bank account
- Mortgage
- Other
Subject (you can customise this)
Your message to NAB (customer – one last chance)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I am giving you one last chance to decide whether you want my business. I am asking you to make commitments today that would be the bare minimum to carry any credibility on climate change from this point forward. 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. Please confirm as soon as possible that you will meet the above three points. Sincerely,
Your message to NAB (shareholder)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a shareholder, I am asking you to make commitments today that would be the bare minimum to carry any credibility on climate change from this point forward. 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. Please confirm as soon as possible that you will meet the above three points. Sincerely,
Your message to NAB (customer and shareholder – one last chance)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I am giving you one last chance to decide whether you want my business. I am asking you to make commitments today that would be the bare minimum to carry any credibility on climate change from this point forward. 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. Please confirm as soon as possible that you will meet the above three points. Sincerely,
Your message to NAB (customer – ask about closing bank account, ending mortgage and ending other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can close my bank account and end my mortgage and other services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer – ask about closing bank account and ending mortgage)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can close my bank account and end my mortgage with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer – ask about closing bank account and ending other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can close my bank account and end other services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer – ask about ending mortgage and other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can end my mortgage and other services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer – ask about closing bank account)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can close my bank account with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer – ask about ending mortgage)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can end my mortgage with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer – ask about ending other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer I would like to know how I can end my services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about closing bank account, ending mortgage and ending other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can close my bank account and end my mortgage and other services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about closing bank account and ending mortgage)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can close my bank account and end my mortgage with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about closing bank account and ending other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can close my bank account and end other services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about ending mortgage and other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can end my mortgage and other services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about closing bank account)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can close my bank account with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about ending mortgage)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can end my mortgage with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Your message to NAB (customer and shareholder – ask about ending other services)
Dear NAB, It is appalling that, since you first expressed support for the Paris Agreement, you have loaned billions of dollars to fossil fuel projects and companies expanding these industries. This is despite it being abundantly clear there is absolutely no room to expand fossil fuels if global warming is to be kept below 1.5 degrees. This undermining of your stated support for the Paris Agreement is disgraceful and needs to stop. It’s very difficult for me to distinguish what’s worse; that – since committing to support the Paris Agreement you have loaned more than $1 billion to companies whose business plans rely on the failure of that exact Agreement, or – you have loaned $1.2 billion to new fossil fuel projects that, over their lifetimes, would enable another 2.5 billion tonnes of CO2 to be released into the atmosphere, or – you have funded new thermal coal mining projects despite promising not to, or – you made the conscious decision to exit the thermal coal sector by 2035, an entire 5 years later than what’s required to achieve the climate goals of the Paris Agreement. As a customer and shareholder I would like to know how I can end my services with you, unless you’re willing to confirm to me 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. If not, please pass along the requested information about ending my business relationship with you. Sincerely,
Yes, I want to hear more from Market Forces about this campaign
- Yes, I want to hear more from Market Forces about this campaign
Hidden
PASS DATA – ACTION LIST: I would like to…
- Give the bank one last chance
Hidden
PASS DATA – ACTION LIST: I would like to…
- Ask for information about ending business with the bank
Hidden
PASS DATA – MAIN LIST: I am an… -> Big bank customer
- NAB
Hidden
PASS DATA – MAIN LIST: I have the following products (mortgage) -> Your bank (home loans)
- NAB

The Paris Agreement means there’s simply no room to expand the scale of the fossil fuel industry. So the most important aspect of today’s announcement isn’t what NAB did say, but what it didn’t say, with the bank still to commit to the bare minimum required to align its business with the Paris Agreement, including:

No longer financing projects that expand the scale of the fossil fuel industry, or companies seeking to expand the scale of the fossil fuel industry,
Phasing out its credit exposure to thermal coal to zero by no later than 2030, and;
Phasing out oil and gas exposure in line with meeting 1.5°C.

Still funding climate-destructive companies

Despite its commitment to the Paris Agreement, just two weeks ago NAB loaned US$50 million to Santos, a company expanding the gas sector with projects including its highly controversial Narrabri Gas Project. Earlier this year, Santos’s board rejected a shareholder proposal to align capital expenditure and emission reduction plans with the Paris climate goals.

In February, NAB participated in a $1 billion senior bank debt facility for Whitehaven Coal despite the fact that the company is pursuing new thermal coal mining projects. This follows the bank’s 2018 loan to New Hope Group, a coal mining company which said was sufficient to fund a new thermal coal mining project, New Acland Stage 3. This loan appears to have breached NAB’s commitment to “no longer finance new thermal coal mining projects”.

Still funding climate-destructive projects

Also contrary to its support for the Paris Agreement, NAB has continued lending to projects expanding the gas industry. In April, NAB loaned C$117.5 million (A$122 million) for the development of the 670km Coastal GasLink Pipeline in British Columbia, Canada. Market Forces estimates that, over its lifetime, the Coastal GasLink Pipeline would transport at least enough gas to emit 610 million tonnes of CO₂ if combusted. That’s more than Australia’s national emissions for the calendar year 2019 (532.5 Mt CO₂-e).

Fossil fuel exposures concerning despite (mostly) reported falls

Today’s figures show that, in the year to September 2020, NAB’s exposure at default (EAD) to gas-fired power generation increased. Meanwhile its reported EAD to other fossil fuel sectors dropped. However, a significant portion of the reported decline in exposure to oil & gas extraction was due to reporting technicalities, raising concerns over whether the underlying exposure increased or decreased and to what extent.

Meanwhile NAB’s failure to offload exposure to polluting gas power means it retains its position as the major Australian bank most exposed to the sector, with Westpac reporting exposure of $0.67 billion, Commonwealth Bank $0.6 billion, and ANZ $0.14 billion.

The inconstant, constantly fluctuating changes in NAB’s exposure to the gas and oil sectors (as demonstrated in the tables below), combined with NAB’s failure to adopt Paris-aligned thermal coal exit plans, means Market Forces will move forward with a shareholder resolution calling on the bank to formulate and disclose Paris-aligned strategies and targets to reduce its fossil fuel exposure.

Exposure to dirty gas power on the rise

NAB’s reported exposure to dirty gas-fired power generation increased by 4% in the year to September 2020, from $940 million to $980 million.

Since September 2016, NAB’s exposure to polluting gas power has skyrocketed by 220%, from $306 million in to $980 million, with a large increase occurring from 2018 to 2019.

Year	Exposure at default (EAD)	% change
Sep 2016	$306 million
Sep 2017	$470 million	+53%
Sep 2018	$430 million	-8%
Sep 2019	$940 million	+118%
Sep 2020	$980 million	+4%

NAB’s EAD to gas-fired power

Exposure to coal down (yet still no Paris-aligned commitment to exit thermal coal)

Exposure to coal mining fell by 13%, from $1.51 billion to $1.30 billion, and has been on the decline since Sep 2019. This trend is consistent with an exit from thermal coal, but with NAB yet to officially commit to ensuring this exit is consistent with the Paris Agreement.

Year	Exposure at default (EAD)	% change
Mar 2019	$1.47 billion
Sep 2019	$1.51 billion	+3%
Mar 2020	$1.36 billion	-10%
Sep 2020	$1.30 billion	-4%

NAB’s EAD to coal mining

The bank’s exposure to coal-fired power also fell 33% from $120 million to $80 million in the year to September 2020, consistent with a long-term downward trend in NAB’s exposure to this sector.

Exposure to oil & gas extraction down (reportedly)

NAB’s reported exposure to oil & gas extraction declined by 26% in the year to September 2020, after increasing by 10% in the year to September 2019. However, NAB attributes this year’s reduction in exposure to:

AUD currency appreciation of USD denominated exposures and lower mark-to-market position of treasury related products in the Oil & Gas extraction sector
NAB 2020 Full Year Results Presentation

At the time the results were released, NAB was unable to confirm the underlying change to its exposure net of these considerations.

Year	Exposure at default (EAD)	% change
Sep 2018	$3.39 billion
Sep 2019	$3.73 billion	+10%
Sep 2020	$2.74 billion	-26%

NAB’s EAD to oil & gas extraction