Banks are stepping up

CommBank—the biggest bank in Aus—just released a new climate policy. It’s pretty huge.

The good:

• They’ve categorically ruled out any investment in new or expanded oil and gas projects beyond 2024
• In the last 2 years they’ve reduced their fossil fuel investment by 92%
• Of the big 4 banks they were previously the biggest investor, and are now the smallest by a significant margin
• Big banks are officially on notice – it’s time to step up

The less good:

• Investment in fossil fuel projects and polluting companies in general will continue as normal until at least 2024
• They haven’t ruled out investment in new natural gas projects
• A 92% reduction in investment still equates to $267 million (they peaked at $4 billion in 2018), so it’s definitely not zero
• Which means they’re far from on-track for net zero by 2050 (although significantly closer)

The rub:

This is a HUGE step, especially in the presence of other big banks.

But they’re a big bank, and they should be doing at least this and more. Applause for sure, but zero sympathy until they’re at least on-track for net zero.

👉 Until then, I still say switch.

Investment in good projects through ethical banks is still immeasurably better than just less fossil fuel investment.

…but let’s watch and see how the other banks respond. This is a pretty big move.

An in-depth breakdown of CommBank’s new climate policy is on the Market Forces website.