2020 Sustainability Strategy - half year progress update
Hi everyone,
I am pleased to share with you our first half year performance against our new 2018-2020 Sustainability Strategy.
Our Sustainability Strategy is designed to put our customers at the heart of everything we do, supporting the role Westpac can play in helping to build the prosperity of the nation. In the current climate, this has never been more important.
The UN Sustainable Development Goals (SDGs) underpin our approach, setting out the opportunity, and providing a platform for business, government and the broader community to partner and take action.
Progressing the sustainability agenda
This year, the Task Force on Climate-related Financial Disclosures (TCFD) – a voluntary framework set up by the G20 for companies to disclose the financial impact of climate-related risks and opportunities – continues to influence our conversations with our customers and investors, as we support a transition to a low carbon economy. It is especially good to see the critical role of the financial sector in supporting enhanced disclosure on climate risk.
Back in 1992, Westpac was an inaugural signatory to the UN Environment Programme – Finance Initiative (UNEP FI), a partnership between United Nations Environment and the global financial sector, and was a proud supporter of the Principles for Responsible Investment in 2007. In late April I took part in an initiative working with banks from around the world to commence drafting the Principles for Responsible Banking including setting out the hallmarks of a sustainable bank, supported by an accountability framework.
This year we published our second Slavery and Human Trafficking Statement under the UK’s Modern Slavery Act, and it’s encouraging to see that businesses are developing a better understanding of their role in supporting human rights through their work with suppliers and customers. We continue to support the proposed introduction of an Australian Modern Slavery Act.
Westpac sustainability progress highlights
Some of the actions we've taken as we start to deliver against our 2020 Sustainability Strategy include:
- Increasing our total committed exposure to climate change solutions and environmental services to more than $8.5 billion, progressing towards our 2020 target of $10 billion. We were the first bank in Australia to support a two degree economy in 2014, and to then undertake climate change scenario analysis in 2016, and now integrating the recommendations of the TCFD - important steps contributing to continued progress in this area.
- Releasing our second Slavery and Human Trafficking Statement. This is built on the foundations established when we undertook our first supplier assessment in 2002 and were the first Australian bank to publish a supply chain strategy the following year.
- Lending over $1.34 billion to the social and affordable housing sector, up from $1.32 billion at 30 September 2017.
- Welcoming our 336th Westpac Scholar, with 100 educational scholarships awarded during this half year to individuals who we believe will help shape a better future.
- Introducing our 2018-2020 Inclusion & Diversity strategy, including our neurodiversity internship program designed to remove some of the traditional barriers to work for people on the autism spectrum (as featured on ABC TV’s Employable Me series).
- Convening our Vulnerable Customer Council comprising industry based consumer advocates to enable two-way dialogue on emerging issues and external customer perspectives.
- Providing 65 relief packages to customers impacted by natural disasters across Australia, including bushfires in southern New South Wales and south east and south west Victoria, Cyclone Marcus in the Northern Territory and floods in northern Queensland.
- BT Financial Group introducing its refreshed Responsible Investment Position Statement.
- 50% of employees participating in our workplace giving program.
These are just a few highlights. More information on our progress is available in our Sustainability Newsroom.
It is a challenging time for the Australian banking sector. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has raised significant customer and community concerns. We need to get it right in every interaction with our customers, and where we don’t, we need to put it right. Now in place for two years, the Office of the Customer Advocate is playing an important role in helping us understand where we have got it wrong and how we can do better, particularly in supporting our more vulnerable customers. For more on this and today’s half year financial results, please see the video interview with Westpac CEO Brian Hartzer or visit our Investor Centre.
Our Sustainability Strategy has a clear focus on supporting our customers and contributing positively to the future of the nation. To restore trust and confidence in the banking sector, we need to get the basics right and deliver the best possible products and services to help our customers achieve what’s important to them. As one of Australia’s largest companies, we also have a strong role to play in helping to create positive social, economic and environmental impact for the benefit of all.
Regards
Siobhan Toohill
Group Head of Sustainability, Westpac Group
More information:
- Results: video interview with Westpac CEO Brian Hartzer on Westpac Wire
- Results: Infographic on Westpac Wire
- Full details of Westpac Group’s 2018 Interim Financial Results
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