Bank dumped over fossil fuels
A conservation organisation is shifting banks over concerns about fossil fuels.
Forest & Bird said it was quitting ANZ in May, and taking its business to Kiwibank.
It had asked ANZ for a fossil fuel divestment plan in 2016 but was not satisfied with the company’s response.
‘‘It’s important that the companies we do business with are not invested in fossil fuels. That’s not an industry that is part of a sustainable future for our planet,’’ said climate advocate Adelia Hallett, speaking on behalf of Forest & Bird’s board.
‘‘We accept Kiwibank’s assurance they do not currently lend to fossil fuel companies. However, they are aware that we want to see this become a permanent public commitment,’’ she said.
‘‘Climate change is a major threat to New Zealand’s unique and threatened native species. Across the globe, the fossil fuel industry has been responsible for major environmental damage and the loss of important natural habitats.
‘‘Forest & Bird doesn’t invest in fossil fuels and it is important to us that our banking provider supports this.
‘‘We encourage other organisations in New Zealand to look at the investment practices of their banks. This is an action we can all take on climate change. By demanding responsible investment practices, we can change the way this country, and the world, does business.’’
Greater Wellington Regional Council has also announced it would be reviewing its treasury policies to monitor the country’s big four banks on their direct investments in fossil fuels.
Economic development leader Roger Blakeley said the council would use its own investment and debt as leverage to monitor the banks, encourage them towards clean technology investments, and then make its own investment decisions on that track record.
Eventually the results would be put to Local Government New Zealand, with a view to rolling the monitoring scheme out across the country’s councils, he said.
Simon O’Connor, of the Responsible Investment Association of Australasia, said data indicated that ANZ had the highest exposure to fossil fuels of the big four Australian banks.
‘‘All the banks now disclose some form of lending to fossil fuels in various metrics after investors engaged and asked for this data.
‘‘The other side of this equation, though, is the lending to renewables. The banks are all pushing quite hard in increasing lending to renewables, with many of them increasing the issuing of green bonds for this purpose, and helping to facilitate corporates to raise debt for green investments.’’
An ANZ spokeswoman said it shared Forest & Bird’s ambition for a low-carbon future, but believed the transition should be a carefully managed process.
ANZ’s lending to renewables was two-and-a-half times greater than lending to fossil fuels, she said.
‘‘Fossil fuels are a very small part of our total portfolio at $414 million or 0.24 per cent as at December 2017, with most of this in gas.
‘‘This has decreased over time, reflecting our commitment to financing the transition.
‘‘ANZ Group has pledged A$15 billion (NZ$15.9b) by 2020 to support our customers with low carbon and sustainable solutions such as green buildings, renewable energy, energy efficiency, water, waste and transportation. Already A$1.59 billion has been contributed by New Zealand.’’