How can you embed net zero in business-as-usual operations across an entire banking portfolio in just three years?
This Australian bank embarked on its journey towards net zero, setting targets as a first step. But the pace accelerated dramatically when the company decided to join the Net Zero Banking Alliance, which requires banks to fully implement net zero in its business-as-usual operations across its entire portfolio within three years.
We’re providing end-to-end support as the bank transforms to reach net zero
We’re supporting the bank to develop and execute a net -zero strategy, including setting ambitious targets across sectors that contribute to the highest financed emissions.
Credibly embedding net zero into a bank’s operations and risk management is essential to reduce the risk of greenwashing, steer portfolios towards targets, and empower bankers to be more sustainable. We worked side-by-side with the bank to define the current and target state needed to effectively implement net zero. We then supported the establishment of monitoring, measurement and tracking processes needed to integrate net zero into business-as-usual practices.
A key pillar of the net zero strategy is having a process to help the bank engage with and assess the credibility of their customers’ transition plans. We have supported the bank to develop a credible transition planning framework, providing the structure and training required to have difficult conversations about the need to transition, and understand new opportunities to help customers decarbonise.
Throughout the programme, we’ve shared global and Australian best practice. Our deep industry and content expertise has helped our client understand what is needed to transition, through the varying lenses of its different stakeholders - be they shareholders, staff, or customers. This way of working has encouraged the bank to increase sophistication in their thinking and challenged them to be bold throughout the process.
We’ve sowed the seeds of a huge cultural shift
The net zero programme has encouraged the bank to rethink its entire business. For example, reassessing risk based on the emissions of its customers, and identifying opportunities to promote sustainable finance products to help clients decarbonise. Our client is now on track to align its portfolio to net zero within three years and to contribute to the real economy achieving net zero by 2050.
"The climate crisis is a global problem but it is felt more acutely in Australia than in some other countries. Naturally, Australian banks are interested in how financial institutions elsewhere are working to reach net zero. Because we’re a global business with a rich history of supporting companies, industries and governments understand the transition, we bring credible international sustainability insights to the work we do every day. This has helped our clients understand and manage their exposures, whilst also seeking out opportunities to grow their business and enable customers to transition faster."
Andrew White, Expert in Climate Risk and ESG Strategy, Baringa
Related Case Studies
Helping UK Finance make Open Banking a driver for innovation
Making banking better, fairer and more open for everyoneRead more
Building an offshore lending operation from scratch in Bangalore
How do you build a lending business from the ground up within one year?Read more
Equipping a UK building society to fight financial crime
How do you create a technology platform that can stay one step ahead of financial criminals?Read more
Helping a global investment bank team to identify risks
How do you train a global team when travel is impossible?Read more