Newcastle Airport has successfully converted $235m of funding from CommBank to support sustainability initiatives over the next five years.
CommBank acted as sole coordinator in the deal and will provide funding through an innovative Green Sustainability-Linked Loan (GSLL). The Green Loan component can fund energy efficient buildings, renewable energy, energy efficiency, pollution prevention and control, electric vehicle transportation and biodiversity initiatives.
The Sustainability-Linked Loan ties interest rates to performance on three sustainability outcomes, building on existing achievements:
- Set and work towards a science-based target for reducing scope 3 emissions, caused indirectly throughout the airport's supply chain. As part of this, the airport will work with airlines and tenants to reduce supply chain emissions installing infrastructure to support stakeholders to meet their goals, collaborating on mutually beneficial initiatives and advocating for sustainable aviation fuel (SAF) alternatives for the aviation industry.
- Maintaining the third-highest level in Airport Carbon Accreditation (ACA), one of only two airports in Australia to do so. The ACA independently assesses and recognises the efforts of airports to manage and reduce their carbon emissions. Newcastle Airport's accreditation showcases its commitment to sustainable practices and environmental stewardship.
- Waste reduction - committing to reducing waste to landfill for the entire airport precinct by collaborating with precinct stakeholders, investing in diversion initiatives and waste education programs.
The new loan builds on Newcastle Airport's commitment to achieving net zero scope 1 and scope 2 carbon emissions by 2030. Some of the important ways the airport has progressed on its commitment include:
- Designing and building energy efficient structures: the new terminal build has received a 5-Star Green Star 'Designed' Record of Achievement from the Green Building Council of Australia. Innovation hub Astra Aerolab buildings under development are also targeting the same accreditations. The expanded terminal at Newcastle Airport achieving a 5 Star Green Star rating is a testament to its high level of sustainability and environmental performance.
- Renewable energy: new carpark roof now supports 1236 solar panels.
- New partnership with an Australian renewable energy retailer, allowing energy requirements to be met entirely through renewable sources. This is a significant step towards the airport's commitment of achieving net zero scope 2 emissions well ahead of its original 2030 target.
Newcastle Airport CEO Dr. Peter Cock thanked CommBank for its support and said the loan funding will play a crucial role in delivering the airport's sustainability promise and is fundamental to its commitment of being the airport the region deserves.
"The people of the Hunter have high expectations," Dr Cock said. "Ongoing investment in energy-saving and green initiatives is a key driver of Newcastle Airport's leadership in the sustainable energy space. The Hunter is a region in transition, and Newcastle Airport is committed to enabling that shift towards our region and nation achieving net zero.
"Our partnership with CommBank contributes to global sustainability efforts and aligns with our goal to become the green gateway to NSW."
CommBank General Manager Regional and Agribusiness Banking, Vanessa Nolan-Woods, said: "We're delighted to continue our ongoing partnership with Newcastle Airport and play a role in helping to support the growth and sustainability of the Hunter and Newcastle region.
"Newcastle Airport is already making strong progress in the transition to net-zero and its desire to set ambitious new environmental targets as part of this new funding arrangement demonstrates a continued commitment to achieving sustainable outcomes and the development of a world-class gateway to the Hunter region."
Commenting on CBA's commitment to the region, Ms Nolan-Woods said: "We have expanded our Business Banking and customer support teams on the ground to better support growth in the region. We are also incredibly proud of our specialist sustainable finance team who work with our bankers and their customers to help them innovate and accelerate sustainability objectives."
CBA is committed to supporting the aviation and transport sectors with sustainable finance. Recent transactions include:
- Dysons Group: Structured financing to support electrification of bus fleet following Victorian Government's award of 10-year metropolitan bus contract.
- GoZero Group: Asset finance to support GoZero school bus electrification in New South Wales
- North Queensland Airport: Sustainability-Linked Loan tied to better biodiversity outcomes and partnership with First Nations peoples
Go to CBA Newsroom for the latest news and announcements from Commonwealth Bank.
