Latest news with #Net-ZeroBankingAlliance
Scoop
21-07-2025
- Business
- Scoop
ComCom Finds No Evidence Of Cartel Behaviour In Banks' Involvement In Net-Zero Banking Alliance
The Commerce Commission has investigated and found no evidence to support a complaint from Federated Farmers of New Zealand (Federated Farmers) alleging potentially anti-competitive, coordinated, cartel-like behaviour involving five major banks in New Zealand associated with the Net-Zero Banking Alliance. The banks involved are ANZ Bank New Zealand Limited (ANZ), ASB Bank Limited (ASB), Bank of New Zealand (BNZ), Rabobank New Zealand Limited (Rabobank), and Westpac New Zealand Limited (Westpac). These banks collectively account for around 97% of New Zealand's agricultural lending market. Commerce Commission General Manager Competition, Fair Trading and Credit Vanessa Horne says the complaint, received last December, alleged the banks were coordinating their agricultural lending policies to align with Net-Zero Banking Alliance strategies and targets. It alleged that, in doing so, the banks were potentially acting anti-competitively, in breach of the Commerce Act. The complaint also raised concerns that this alleged coordination could reduce farmers' access to capital, resulting in higher borrowing costs and stricter lending terms. 'We know New Zealanders are very focused on the work being done by the Commission (and others) to ensure banks are acting fairly - and farmers are no different,' says Ms Horne. 'If we see activity that falls foul of the laws we enforce, we will not hesitate to act. In this case, however, we thoroughly investigated the complaint and concluded that the banks had made their own, independent decisions. We found no evidence of unlawful coordination between the banks or with the Net-Zero Banking Alliance, either relating to the banks joining or in meeting their obligations under this alliance.' On that basis, the Commission says, it will be taking no further action. The Commission is keenly aware that, in many sectors, New Zealand businesses are working hard to develop and deliver sustainability initiatives together. New Zealand's competition laws can accommodate such collaboration - to help businesses, the Commission has developed Collaboration and Sustainability Guidelines that can be found on its website. Background The Net-Zero Banking Alliance The Net-Zero Banking Alliance is a United Nations (UN) convened initiative, supporting banks to lead on climate mitigation in line with the goals of the Paris Agreement. It was co-launched on 21 April 2021 by the United Nations Environment Programme (UNEP) Financial Initiative and the Prince of Wales Sustainable Markets Initiative Financial Services Taskforce, with 43 initial banks as signatories. Joining the Net-Zero Banking Alliance is entirely voluntary, and any signatory may join or withdraw at any time. Banks that choose to become signatories to this alliance make a public statement of an intention to align the greenhouse gas emissions from their lending and investment portfolios with net-zero pathways by 2050 or earlier. The Net-Zero Banking Alliance does not prescribe targets that signatories should set. Instead, it provides signatories with a framework for target setting, resources, global expertise, and tools to help them individually assess the emissions within their portfolios and understand ways that the shift of capital towards low-carbon activity might be accelerated.
AU Financial Review
12-07-2025
- Business
- AU Financial Review
HSBC exits banks' climate coalition abandoned by Wall Street
HSBC has left the world's biggest climate alliance for banks, which was rocked earlier in the year by an exodus of many of its largest members. HSBC said the Net-Zero Banking Alliance played an important role in helping develop frameworks for setting emissions-reduction targets. 'With this foundation in place, and as we work towards updating and implementing our Net Zero Transition Plan later in 2025, we, like many of our global peers, have decided to withdraw from the NZBA,' it added.
The Mainichi
09-06-2025
- Business
- The Mainichi
Editorial: Amid global warming threat, Japan's financial sector must help protect planet
Neglecting climate change initiatives to appease the U.S. administration of Donald Trump will create a breeding ground for future problems. Major financial institutions in Japan and the U.S. have successively withdrawn from the Net-Zero Banking Alliance (NZBA), an international framework aiming for decarbonization. Following the departure of U.S. banks including Citigroup Inc., Japan's three megabanks, including Sumitomo Mitsui Financial Group Inc., followed suit this spring. The NZBA is a system that encourages financial institutions to select their investment and lending targets based on whether they are contributing to decarbonization, thereby promoting the exit of businesses with a large environmental impact, such as coal-fired power generation. It is expected that the initiative will prove effective in pushing for the realization of a carbon-free society with the power of finance to influence corporate activities. The tide has changed, however, with the return of Trump, who has dismissed the climate crisis as "fake." Criticism within the ruling Republican Party has grown over financial institutions aligning themselves to restrict investments and loans for fossil fuel businesses. In some U.S. states, there have been moves to exclude NZBA member banks from transactions, on the grounds their stance contradicts the Trump administration's energy policy. U.S. banks that have left the NZBA are already actively investing and lending for fossil fuel projects. The Japanese megabanks have not provided reasons for their departure, but it is believed that they became wary of the risk of their business in the U.S. being disadvantaged under the scrutiny of the Trump administration. The banks stress that they will strengthen climate change measures, but by following the lead of American banks, they cannot evade being labeled deceptive. The NZBA was launched in 2021 at the proposal of Mark Carney, former governor of the Bank of England and current Prime Minister of Canada. Leading financial institutions worldwide signed up, pledging to collaborate on decarbonization, aiming for net-zero greenhouse gas emissions by 2050. European banks that place an emphasis on climate change measures and many in emerging and developing countries have not withdrawn. Within Japan, Sumitomo Mitsui Trust Group Inc. remains a member of the alliance. The target of keeping the average global rise in temperatures to no more than 1.5 degrees Celsius compared to pre-industrial levels as a measure against global warming is under threat. It is essential to make efforts to keep international cooperation on decarbonization from backpedaling. Megabanks operating globally bear a responsibility to act with the planet's interests in mind.
Business Times
05-06-2025
- Business
- Business Times
OCBC stays the course on climate commitment
[SINGAPORE] The global effort to combat climate change has faced significant headwinds in recent years. Under the Trump administration, the US withdrew from the Paris Agreement, a landmark international treaty to tackle climate change. More recently, several major financial institutions, including American and Japanese banks, exited the Net-Zero Banking Alliance, a coalition committed to aligning banking practices with net-zero greenhouse gas emissions by 2050. Despite this shifting landscape, OCBC remains committed to its decarbonisation agenda. 'For OCBC, our position remains the same because climate change is still a real issue based on science, and it is our responsibility to be part of the solution as a connector of capital,' says OCBC's group chief sustainability officer Mike Ng. The bank offers strategic advisory, innovative financial solutions and ecosystem partnerships to help large corporations, small and medium enterprises (SMEs), and retail investors achieve their sustainability goals. Ng acknowledges that the journey to net zero is fraught with challenges and 'will never be linear'. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Nevertheless, he stresses that OCBC's commitment to sustainability is not an 'academic exercise' but a long-term business strategy for the bank that shapes its portfolio and guides how it supports industries and clients in their green transition. While climate efforts globally may appear to be losing momentum, Ng believes that significant opportunities remain in the transition to net zero, particularly in Asia. A World Economic Forum white paper from 2023 estimated that climate adaptation and mitigation initiatives in Asia could unlock an additional US$4.3 trillion in revenue and create 232 million new jobs in the region by 2030. Ng points out that industries such as renewable energy and electric vehicles have already achieved commercial viability, and that some OCBC clients are actively increasing their investments in these areas across the bank's key markets. These markets include China, which has emerged as a green industry powerhouse. The country added 373 gigawatts of renewable energy capacity in the past year and now accounts for more than 70 per cent of global EV production. In 2024 alone, it exported nearly 1.25 million electric cars. Investments are also being made in emerging technologies. In 2024, OCBC participated in the project financing of a large-scale carbon capture and storage (CCS) project in the UK. CCS technologies are currently being explored in various markets in Asia. The business case for sustainability Ng cautions that the risks of inaction against climate change remain high, especially in Asia, which is expected to bear the brunt of the physical consequences of climate change. 'We need to continue to pay attention, especially from a loan portfolio perspective, as part and parcel of sound risk management,' he says. Ng notes that despite the broader global turn against decarbonisation, governments in the region remain focused on the transition. For example, in the markets where OCBC operates, policymakers continue to promote regulations and guidelines pertaining to transition planning, sustainability reporting and sustainable financing, among others. The global backtracking by some institutions also presents a timely opportunity to take stock of current decarbonisation policies and regulations, says Ng. For example, sustainability reporting has become a 'burdensome' requirement for some firms, potentially distracting from meaningful climate action. In this context, the European Union's Omnibus package announced earlier this year aims to streamline sustainability regulations and ease compliance costs for companies, especially SMEs. Ng also calls for a reassessment of the reference pathways – which set out emission reduction targets and deadlines – for underperforming sectors. While a sector such as power is progressing well against its net-zero reference pathway due to the proliferation of renewable energy, others such as aviation and shipping are seeing slower progress due to the limited availability of green technology. This disparity suggests it may be time to recalibrate these pathways and targets. 'Because the more unrealistic those reference pathways and targets remain, the less inclined financiers, investors and businesses will be to commit to them. Without targets, it will be hard to galvanise action,' says Ng. An opportune moment for action In light of this, Ng believes it is all the more critical now to continue to encourage and support businesses to work towards their decarbonisation goals, rather than risk having them fall off the journey due to the difficulties. 'OCBC remains committed to supporting our clients in their net-zero transition and sustainability goals with financing as well as knowledge and tools,' he says. The bank supports both large corporates and SMEs through three key areas: strategic advisory, innovative financial solutions and ecosystem partnerships. For large companies, OCBC provides industry-specific advisory services, helping them quantify cost savings from undertaking emissions reduction initiatives and assess return on such investments. The bank also extends financing to help them meet their sustainability goals. Asia's partner for a sustainable future Its leadership in sustainable finance is reflected in recent accolades. With a committed sustainable finance portfolio of S$71 billion, OCBC was ranked the top Mandated Lead Arranger for Green and Sustainability Linked Loans in both Asia-Pacific (excluding Japan) and in South-east Asia by the London Stock Exchange Group last year. OCBC also ranked eighth in Environmental Finance's 2024 Sustainability Coordinators League Table, which showcases the top banks leading the charge globally in sustainability coordinator deal activity and volume. OCBC was the only Singapore bank on the list. For SMEs which lack the resources of larger firms, OCBC helps them understand the steps they can take to decarbonise and to access the capital needed to do so. For example, in February this year, OCBC partnered Enterprise Singapore to launch the OCBC SME Start-ESG Programme, which helps SMEs measure sustainability metrics, receive expert advice and access sustainability-linked loans (SLL). Last year, more than 110 SME clients received such loans – four times more than in 2023. The bank also offers unique products, such as its first-in-market OCBC 1.5 degrees Celsius loan. Unlike other SLLs whose parameters are negotiated between the client and financial institution, the OCBC 1.5 deg C loan sets 'science-based, measurable targets' for clients to lower their emissions, based on the industries they are in. Since its launch in 2023, OCBC has offered the loan to major corporates, including City Developments Limited, CapitaLand Ascott Trust and Cofco International. Beyond businesses, OCBC also supports retail investors on their sustainability journey. In February 2024, it launched the OCBC Sustainability Hub on its mobile app, allowing users to view the ESG rating of their investment portfolios. This feature helps individuals make more informed investment decisions and contribute to sustainability in a tangible way. Staying the course Ng reiterates that OCBC's net-zero commitment in its financed emissions is a 'strategic, long-term decision', aligned with the enduring nature of climate change. He acknowledges that some companies may choose to pause their green transition efforts for now, focusing on more immediate business challenges such as the impact of US tariffs. Even so, he urges businesses to view decarbonisation as an integral part of their long-term strategy. As larger corporations increasingly scrutinise the emissions of their supply chains, smaller suppliers will find it in their business interest to reduce their own emissions in order to stay competitive. Improving on their sustainability metrics also allows companies to tap into the growing pool of sustainable finance. Says Ng: 'Climate change will come back and bite us one of these days, sooner or later, in one way or another. So it's better to be prepared than not to be prepared.'
Business Times
04-06-2025
- Business
- Business Times
OCBC stays the course on climate commitment despite global setbacks
[SINGAPORE] The global effort to combat climate change has faced significant headwinds in recent years. Under the Trump administration, the US withdrew from the Paris Agreement, a landmark international treaty to tackle climate change. More recently, several major financial institutions, including American and Japanese banks, exited the Net-Zero Banking Alliance, a coalition committed to aligning banking practices with net-zero greenhouse gas emissions by 2050. Despite this shifting landscape, OCBC remains committed to its decarbonisation agenda. 'For OCBC, our position remains the same because climate change is still a real issue based on science, and it is our responsibility to be part of the solution as a connector of capital,' says OCBC's group chief sustainability officer Mike Ng. The bank offers strategic advisory, innovative financial solutions and ecosystem partnerships to help large corporations, small and medium enterprises (SMEs), and retail investors achieve their sustainability goals. Ng acknowledges that the journey to net zero is fraught with challenges and 'will never be linear'. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Nevertheless, he stresses that OCBC's commitment to sustainability is not an 'academic exercise' but a long-term business strategy for the bank that shapes its portfolio and guides how it supports industries and clients in their green transition. While climate efforts globally may appear to be losing momentum, Ng believes that significant opportunities remain in the transition to net zero, particularly in Asia. A World Economic Forum white paper from 2023 estimated that climate adaptation and mitigation initiatives in Asia could unlock an additional US$4.3 trillion in revenue and create 232 million new jobs in the region by 2030. Ng points out that industries such as renewable energy and electric vehicles have already achieved commercial viability, and that some OCBC clients are actively increasing their investments in these areas across the bank's key markets. These markets include China, which has emerged as a green industry powerhouse. The country added 373 gigawatts of renewable energy capacity in the past year and now accounts for more than 70 per cent of global EV production. In 2024 alone, it exported nearly 1.25 million electric cars. Investments are also being made in emerging technologies. In 2024, OCBC participated in the project financing of a large-scale carbon capture and storage (CCS) project in the UK. CCS technologies are currently being explored in various markets in Asia. The business case for sustainability Ng cautions that the risks of inaction against climate change remain high, especially in Asia, which is expected to bear the brunt of the physical consequences of climate change. 'We need to continue to pay attention, especially from a loan portfolio perspective, as part and parcel of sound risk management,' he says. Ng notes that despite the broader global turn against decarbonisation, governments in the region remain focused on the transition. For example, in the markets where OCBC operates, policymakers continue to promote regulations and guidelines pertaining to transition planning, sustainability reporting and sustainable financing, among others. The global backtracking by some institutions also presents a timely opportunity to take stock of current decarbonisation policies and regulations, says Ng. For example, sustainability reporting has become a 'burdensome' requirement for some firms, potentially distracting from meaningful climate action. In this context, the European Union's Omnibus package announced earlier this year aims to streamline sustainability regulations and ease compliance costs for companies, especially SMEs. Ng also calls for a reassessment of the reference pathways – which set out emission reduction targets and deadlines – for underperforming sectors. While a sector such as power is progressing well against its net-zero reference pathway due to the proliferation of renewable energy, others such as aviation and shipping are seeing slower progress due to the limited availability of green technology. This disparity suggests it may be time to recalibrate these pathways and targets. 'Because the more unrealistic those reference pathways and targets remain, the less inclined financiers, investors and businesses will be to commit to them. Without targets, it will be hard to galvanise action,' says Ng. An opportune moment for action In light of this, Ng believes it is all the more critical now to continue to encourage and support businesses to work towards their decarbonisation goals, rather than risk having them fall off the journey due to the difficulties. 'OCBC remains committed to supporting our clients in their net-zero transition and sustainability goals with financing as well as knowledge and tools,' he says. The bank supports both large corporates and SMEs through three key areas: strategic advisory, innovative financial solutions and ecosystem partnerships. For large companies, OCBC provides industry-specific advisory services, helping them quantify cost savings from undertaking emissions reduction initiatives and assess return on such investments. The bank also extends financing to help them meet their sustainability goals. Its leadership in sustainable finance is reflected in recent accolades. With a committed sustainable finance portfolio of S$71 billion, OCBC was ranked the top Mandated Lead Arranger for Green and Sustainability Linked Loans in both Asia-Pacific (excluding Japan) and in South-east Asia by the London Stock Exchange Group last year. OCBC also ranked eighth in Environmental Finance's 2024 Sustainability Coordinators League Table, which showcases the top banks leading the charge globally in sustainability coordinator deal activity and volume. OCBC was the only Singapore bank on the list. For SMEs which lack the resources of larger firms, OCBC helps them understand the steps they can take to decarbonise and to access the capital needed to do so. For example, in February this year, OCBC partnered Enterprise Singapore to launch the OCBC SME Start-ESG Programme, which helps SMEs measure sustainability metrics, receive expert advice and access sustainability-linked loans (SLL). Last year, more than 110 SME clients received such loans – four times more than in 2023. The bank also offers unique products, such as its first-in-market OCBC 1.5 degrees Celsius loan. Unlike other SLLs whose parameters are negotiated between the client and financial institution, the OCBC 1.5 deg C loan sets 'science-based, measurable targets' for clients to lower their emissions, based on the industries they are in. Since its launch in 2023, OCBC has offered the loan to major corporates, including City Developments Limited, CapitaLand Ascott Trust and Cofco International. Beyond businesses, OCBC also supports retail investors on their sustainability journey. In February 2024, it launched the OCBC Sustainability Hub on its mobile app, allowing users to view the ESG rating of their investment portfolios. This feature helps individuals make more informed investment decisions and contribute to sustainability in a tangible way. Staying the course Ng reiterates that OCBC's net-zero commitment in its financed emissions is a 'strategic, long-term decision', aligned with the enduring nature of climate change. He acknowledges that some companies – particularly SMEs – may choose to pause their green transition efforts for now, focusing on more immediate business challenges such as the impact of US tariffs. Even so, he urges these businesses to view decarbonisation as an integral part of their long-term strategy. As larger corporations increasingly scrutinise the emissions of their supply chains, smaller suppliers will find it in their business interest to reduce their own emissions in order to stay competitive. Improving on their sustainability metrics also allows companies to tap into the growing pool of sustainable finance. Says Ng: 'Climate change will come back and bite us one of these days, sooner or later, in one way or another. So it's better to be prepared than not to be prepared.'
