Westpac NZ has set updated sustainability targets for the three years to 2027, including increasing sustainable lending to $9 billion, increasing lending in support of affordable housing by $1 billion and investing $30 million in the community.
Westpac NZ CEO Catherine McGrath says the commitments underscore the bank's intent for the coming years.
"We're focused on supporting our business and farming customers to grow while transitioning to a low emissions economy; helping more New Zealanders into their own homes; and investing in better outcomes in our communities," Ms McGrath says.
The 30 September 2027 commitments relate to:
- Increasing sustainable lending to $9 billion (from $7 billion currently). The $9 billion target will measure lending committed or outstanding as at 30 September 2027.
- Increasing lending in support of affordable housing solutions by $1 billion.
- Investing $30 million in the community, including Westpac NZ staff using 100,000 hours of volunteering leave.
- Reducing operational emissions in line with 1.5˚C, reducing financed emissions, and supporting customers to transition towards net-zero.
- Delivering 40,000 financial wellbeing interactions, including financial education workshops, providing extra care to customers in need and the provision of safe and equitable banking services.
"These new commitments build on the work we've done to date," Ms McGrath says. "In setting the targets, we considered what would be meaningful for our customers and communities, as well as the areas where we see that we can have a positive impact.
"The $9 billion sustainable lending commitment demonstrates our ambition to support our business and farming customers to invest in initiatives to reduce their emissions, improve climate resilience or lead to positive social outcomes."
Ms McGrath says supporting affordable housing is another key focus.
"Research shows home ownership is a major concern for a growing group of New Zealanders," Ms McGrath says. "Lending $1 billion in support of affordable housing solutions is something we believe will have a tangible impact on New Zealanders' financial wellbeing. We'll do this through working with community housing providers and iwi groups, as well as supporting innovative solutions to help first home buyers get on the property ladder."
Westpac NZ provides all employees with two volunteer days each year to support a cause of their choice and Ms McGrath says the company will continue to encourage uptake.
"We want to enable our people to use at least 100,000 hours of volunteer leave over the next three years," Ms McGrath says. "We'll also continue to provide funding and support to community organisations through various initiatives and partnerships, including our work with the country's rescue helicopters, NZ Landcare Trust, BLAKE Trust and others."
The new commitments are being announced in conjunction with the release of the bank's annual Sustainability Report and Climate Report. Both publications report upon Westpac NZ's progress on its sustainability goals over the past financial year (Oct 2023-Sept 2024), how the bank is supporting customers with their transition to a low emissions society, and how the bank is reducing its own emissions.
The Westpac NZ Sustainability Report also provides updates on initiatives the bank has undertaken to improve financial wellbeing, promote inclusion and diversity, and support New Zealand communities.
"We've continued our focus on helping New Zealanders to achieve their goals and deliver better outcomes for our communities," Ms McGrath says.
Westpac NZ 2024 Sustainability Report highlights
- Raised a record $1.45m for New Zealand's rescue helicopters
- 97% of the Westpac NZ vehicle fleet is now electric or plug-in hybrid vehicles
- Since June 2023, Westpac NZ has provided $3.58 billion to farmers and growers through its Sustainable Farm Loan
- Since June 2023, Westpac NZ has provided more than $600m in lending through its Sustainable Business Loan
- Employees used more than 35,000 hours of volunteer leave
"We believe we have a key role to play in supporting Aotearoa's transition to a low emissions, resilient and inclusive society. We know there's plenty more to do, but we'll continue to work hard to make a difference," Ms McGrath says.
