Environmental approach

Climate change

We recognise the direct contribution our business can have to climate change and the impact climate change can have on our business, customers and suppliers.

Natural capital and biodiversity

We recognise a healthy environment is essential to healthy people and business.

Managing our environmental impact

Taking a sustainable approach to managing our business is not just important for the environment, it’s essential for the long-term growth and resilience of our organisation. 

We understand our economy depends on a healthy environment.

Our policies

Our objective to manage our environmental impact is guided by our Group Environmental Management Policy (PDF, 274KB), opens in new window and  Group Environment Reporting and Offset Management Policy (PDF, 271KB), opens in new window. 

A sustainable approach to the way we do business isn't only good for the environment, it makes us more resilient.

Our environmental management practices are aligned to the ISO14001 Environmental Management System standard and provide a consistent framework across our business. We implement environmental management practices in each region we operate in, taking into consideration differences in regulatory requirements and operating practices. Further information on our environmental certifications is included in our 2024 Sustainability Data Pack (XLS, 1.1MB), opens in new window.

Governance 

Environmental risks are identified, measured, monitored, reported and overseen in accordance with our Risk Management Framework, as described in our Risk Management Strategy. They are also reflected in our Risk Appetite Statement and relevant supporting sectoral credit appetite strategies, ESG-related policies and management practices. Executive management’s Group Credit and Market Risk Committee also oversees Sustainability Risk (including environment, climate change and human rights-related risk), given a significant part of our exposure to these risks is through lending to customers.

Since 2017, our climate change disclosures have been structured to align with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). In 2023, TCFD disclosures have again been provided in our standalone 2024 Climate Report (PDF, 6MB), opens in new window, which also includes further detail on how we manage risks presented by climate change within our Risk Management Framework.

Updates on environmental risks are provided to the Executive Risk and Compliance Committee, Board Risk and Compliance Committee and Board, as appropriate. Further information on our exposure to environmental risks is set out in ‘Disclosure on risk factors’ in our 2024 Annual Report (PDF, 7MB), opens in new window. Environmental sustainability is a core part of our long-term business strategy, supported by environmental specialists working in our Risk, Sustainability, Strategy and Innovation, Sustainable Finance, Hybrids and Equity Capital Markets, Specialised Finance, Agribusiness, Equipment Finance, Property and Procurement teams.

Environmental sustainability requirements are also embedded into our policies, standards, and management frameworks, including our building design and operating standards, and our risk management framework.

Having the big conversations

We have a role to play in advocating on environmental issues.

We’re engaging in meaningful conversations about environmental issues with our colleagues, customers, government, industry peers, business and the broader community. This includes information sessions and workshops, taking part in consultation on policy developments and joining industry initiatives. 

Internationally we participate in working groups as part of our United Nations Environment Programme Finance Initiative (UNEP FI) membership. We continue to work with other UNEP FI member banks on methodologies and processes to implement the recommendations of the Financial Stability Board’s TCFD. We’re also a member of the Taskforce on Nature-Related Financial Disclosures Forum.

As a signatory to the Net Zero Banking Alliance, NAB has so far set twelve interim 2030 sectoral decarbonisation targets for our lending portfolio in eight of the nine high-emitting sectors listed in the UNEP FI Guidelines.

We advocate on important issues related to climate change and the transition to net zero emissions by 2050 through direct consultation with our customers, government and other stakeholders; participation in industry round tables; and through contribution to the Australian Banking Association and other industry association submissions and statements. This includes issues such as sectoral pathways, sustainable finance, emissions reduction, energy efficiency and electrification, climate disclosure and consistent reporting regimes, managing climate risk, just transition for workers and communities, natural disasters, climate resilience and biodiversity.

In 2024, this included activities in relation to:

• Department of Agriculture, Fisheries and Forestry consultation into development of an Agricultural and Land Sectoral Plan.
• Department of Treasury consultations on Australia’s Sustainable Finance Strategy and on Climate-related Financial Disclosure: Exposure Draft Legislation.
• Australian Sustainability Reporting Standards Boards consultation on Exposure Draft (ED SR1)– Disclosure of Climate-related Financial Information.
• Department of Climate Change, Energy, Environment and Water National Adaptation Plan Issues Paper.
• Climate Change Authority’s 2024 Issues Paper: Targets, Pathways and Progress.
• Australian Sustainable Finance Initiative (ASFI) consultation on draft sustainable finance taxonomy, as well a role on ASFI's Taxonomy Technical Expert Group.

NAB Group is also a member of a range of global finance sector and industry-led initiatives, and we’re signatories to or have pledged support for a range of voluntary corporate standards and principles. See memberships and benchmarking to learn more.

Engaging our colleagues

We’re continually working to increase the environmental awareness of our colleagues and embed this knowledge throughout the business.

As part of this awareness, we’ve incorporated Environmental, Social and Governance risk into our internal risk compliance training. Our Corporate and Institutional and Agribusiness bankers are also being trained to better support customers to decarbonise and build climate resilience.

We use a range of channels, like our internal social media, intranet, email updates and video, to communicate with our colleagues about our environmental initiatives.

Reporting and performance

We’ve set environmental targets and report annually on our progress against these. Read more about our performance in our 2024 Climate Report (PDF, 6MB), opens in new window and 2024 Sustainability Data Pack (XLS, 1.1MB), opens in new window.