- The Guardian
- Issue #2171
Photo: Kiwiteen123 – wikimedia.org (CC BY 3.0)
Westpac’s annual results, released 3 November, reveal the bank has weakened its approach to deforestation.
The bank’s deadline for achieving its earlier ‘no deforestation’ commitment was looming.
In 2023, the Australian Conservation Foundation (ACF) welcomed Westpac’s announcement that it would be the first Australian bank to set a ‘no deforestation’ commitment for beef, sheep, and dairy.
Now, the bank has announced it would “no longer require” a formal commitment but instead “develop practical ways we can help customers manage deforestation risk effectively.”
“As banks increasingly recognise the nature and climate-related risks of deforestation, it’s disappointing to see Westpac loosen its approach while Australia’s deforestation problem continues to grow,” said ACF’s corporate campaigner Jonathan Moylan.
“This backdown is a slap in the face for Westpac customers and investors who don’t want the bank to be linked to the destruction of koalas and Greater Gliders’ homes.
“This move raises questions about Westpac’s net zero commitment, along with its ability to accurately report emissions if it is not monitoring deforestation rates.
“With the upcoming COP30 being touted as an opportunity to reduce financial flows to harmful practices like deforestation, banks should be raising their ambition, not lowering it.”
ACF investigations have found multiple instances of deforestation on properties financed by Westpac, including the destruction of mature koala habitat in the Desert Uplands region in Central West Queensland.
This year ANZ and NAB shareholders filed Australia’s first bank shareholder resolutions on deforestation, calling on their banks to disclose how much they lend to customers involved in deforestation and set a strategies to stop financing land clearing.
ANZ and NAB will be required to respond to those shareholder resolutions on deforestation at their annual general meetings in December.
Legal opinion in 2023 concluded failure on the part of company directors to identify, manage and disclose material nature-related risks may lead to them being found in breach of their duties of care and diligence.
Australian Conservation Foundation
