Why climate action is important for us all
The success of our whole economy depends on the health of our climate.
Climate change presents significant risks and opportunities to the economy. Research commissioned by NAB has revealed the economic opportunity for Australia by looking at the difference between an Australia that only meets its 2050 net-zero targets, versus an Australia that competitively trades in global decarbonisation. The research report, ‘All systems go: Powering ahead, opens in new window’ the second report in the ‘All Systems Go’ series by Deloitte Access Economics, opens in new window, finds by using Australia’s natural advantages in solar, wind and critical minerals could add up to $435 billion to the national economy by 2050.
Our climate strategy
Our strategy aims to maximise the climate transition’s economic benefits for customers, NAB, and the community, and help to achieve emissions reduction targets consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100.
Since our climate strategy was released in 2022, we have leveraged our strength as a relationship-led bank, with the aim to support customers to reduce their emissions and finance associated opportunities. Our climate initiatives span our Business and Private Banking, Personal Banking, Corporate and Institutional Banking divisions and BNZ.
NAB’s climate strategy also captures our operational emissions targets, which includes our international offices, in addition to the capability of our colleagues to support our customers through the transition. For more details about our climate change strategy and governance, refer to our 2024 Climate Report (PDF, 6MB), opens in new window.
Action we're taking
Our main role in climate action is the financing we provide. Our actions are informed by the best science currently available. We’re investing in positive change and helping customers do so too.
While we continue to focus on reducing our own greenhouse gas (GHG) emissions footprint, our greatest impact is through the finance we provide to customers.
We’re taking action to help our economy transition to one powered more by renewables, less by fossil fuels.
TThat's why we're continuing to provide finance to our energy generation customers and other high emitters as they transition to lower carbon operations and engaging with them on their transition plans.
Reducing our emissions
Since 2010, we have been playing our part by reducing our own operational footprint through emissions avoidance and reduction, and then offsetting residual emissions. NAB’s Australian operations have been certified by Climate Active’s Standard for Organisations since 1 July 2010. BNZView Disclaimer 1 and JBWere NZView Disclaimer 2 are both Toitū net carbonzero organisation certified.
We’re continuing to cut emissions in our operations.
Progressing to net zero
Our ambition is to act as a catalyst for climate action, supporting emissions reduction and aligning with pathways to net zero by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100.
NAB has been recognised as the #1 Australian bank provider of project finance to the global renewable energy sectorView Disclaimer 3. In 2024, 79% of our total energy generation finance was for renewables.
Helping customers act too
Our customers are working towards lower emissions, and we’re engaging with them as they evolve their businesses. This includes:
- Supporting 100 of our largest GHG emitting customers as they develop or improve their transition plans.
- Helping colleagues better support customers to decarbonise and build climate resilience through targeted climate training.
- Helping customers become more resilient to natural disasters.
We’re providing finance to help customers reduce emissions, with tailored products and services, and we’re continuing to build new products that support customers to take climate action.
For further information on our approach to assessing certain customers’ transition plans, refer to our 2024 Climate Report (PDF, 6MB), opens in new window, pages 28 to 30.
Working together
To help get Australia to net zero we’re participating in the:
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As the world changes, so does our understanding of climate risk.
Read more about NAB’s ESG risk management. Further detail is also available in our 2024 Climate Report (PDF, 6MB), opens in new window.
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Our 2023 Climate Report, detailed our intention to require a customer transition plan to be in place from 1 October 2025 for customers in certain sectors and for certain types of finance.
In 2024, we developed a Customer Transition Plan Assessment Framework to support the review of Customer Transition Plans and engagement with customers on their actions and progress. Our application of the Assessment Framework will be in addition to existing ESG risk assessment processes which include consideration of climate-related risks, as well as decisions NAB may make on a case-by-case basis to support progress in achieving NAB's decarbonisation targets.
Read more about NAB’s ESG risk management. Further detail is also available in our 2024 Climate Report (PDF, 6MB), opens in new window.
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We continue to build on our climate risk capabilities and processes.
We regularly review our environment, social and governance (ESG)-related credit policy and appetite settings, including those related to our exposure to emissions-intensive, climate sensitive and low-emissions sectors. These reviews consider a range of factors including:
- Various climate change scenarios for both transition and physical risk.
- Customer strategies and plans and their alignment to the Paris Agreement temperature goals.
- Industry trends.
- Trends in our exposures to these sectors.
This review process has led to implementation of ESG-related credit policy and risk settings, including for coal, oil and gas. These risk settings are complementary to our interim sectoral decarbonisation targets, which have been set to guide our lending across key sectors in our portfolio to align our lending portfolio to net zero emissions by 2050.
Further details about interim sector decarbonisation targets is provided in the 'Metrics and targets' section of the 2024 Climate Report (PDF, 6MB), opens in new window.
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In 2023, we launched the NAB Climate Learning Series, a partnership with Melbourne Business School’s Centre for Sustainability and Business that aims to equip bankers with climate knowledge and confidence to support our customers to decarbonise and transition. The series comprised of four climate learning programs providing colleagues with subject matter expertise and insights.
Since the launch of the Climate Learning Series, almost 8,000 colleagues across NAB have completed the first program Climate Foundations. A further three additional sector-specific programs were launched to focus on the Transport, Agriculture, and Real Estate (commercial and residential) sectors, which contribute significantly to national carbon emissions and represent significant customer exposure. Across the three additional sector-specific programs, there have been over 10,000 completions by colleagues to date.
In 2024, a refreshed climate risk module was rolled out as part of NAB's annual risk awareness training for colleagues. This included a case study to help colleagues better understand and recognise climate risk (both transition and physical risk) in a customer context. The module was mandatory for certain risk and customer-facing colleagues and other colleagues were able to choose to complete the training. Since its launch, close to 16,000 colleagues have completed it across NAB.
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We have a target to source 100% of NAB Group’s operational electricity consumption from renewable sources by 30 June 2025View Disclaimer 4, as part of the RE100 initiativeView Disclaimer 5. We made significant progress in the 2024 environmental reporting year, increasing the proportion of electricity consumption sourced from renewable sources to approximately 95%.
Working towards sourcing 100% of the electricity we need from renewable energy sources will continue to reduce our carbon emissions.
We’ve also set a science-based target to reduce our scope 1 and 2 (market-based method) greenhouse gas emissions.
In 2023, NAB updated its science-based operational emissions reduction targetView Disclaimer 6 to align with a pathway to limit global warming to 1.5°C. We report on our progress in our annual reporting suite. Learn more about our environmental performance.
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In 2024, we established our new environmental finance ambition of $80 billion by 2030. As of 30 September 2024, we’ve provided over $7 billion towards our ambition, including $4 billion of lending activity and $3.3 billion of capital markets activity.
Learn more about our environmental financing ambition on page 63 of our 2024 Climate Report (PDF, 6MB), opens in new window.
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We continue to engage in dialogue with key stakeholders, including customers and the wider community, to help inform how we advocate on climate policy with all levels of government. We also strive to ensure our engagement on climate policy continues to be co-ordinated and consistent. We communicate our position, and outcomes annually through our CDP climate change survey response (PDF, 907KB) and annual reporting suite of documents.
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We’ve publicly reported on our GHG emissions since 2003. We are aligning our GHG reporting with internationally recognised climate change reporting frameworks, such as the Climate Disclosure Standards Board’s Climate Change Reporting Framework and the recommendations of the TCFD. We continue to incorporate disclosure of relevant climate change related information in our annual reporting suite and have included carbon-related disclosures in our Half and Full Year Investor Presentations since May 2015.
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We’ve put a price on carbon and aligned to the UN Global Compact’s business leadership criteria on carbon pricing.
We first established an internal carbon price in 2010, as part of action to achieve and maintain carbon neutrality. NAB will continue to disclose, in our annual CDP climate change survey response and other relevant corporate publications, how we use our internal carbon price.
Read more climate news
Learn how we’re working to be part of the climate solution on NAB News.
Explore sustainability at NAB
Environmental approach
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Environmental performance
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Natural capital and managing our environmental impact
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