This is helping us to understand who is in a positive financial position to meet future repayments; and who could experience financial stress in the next 12 months. We are focused on proactively identifying and contacting customers who may need help.
This could be through text messages, nudges, or prompts. For example, courtesy reminders of when next payments are due or phone calls suggesting direct loan payments. We’ve also invested significantly in building and upskilling our financial hardship team during the pandemic.
The path to net zero
In the area of sustainability we want be the leading Australia-and New Zealand-based bank in supporting customers' transition to net zero emissions.
We have a key role to play by directing our finance, services and advice to support our customers in shifting to low-carbon business models. We’ve committed to funding and facilitating $50 billion by 2025 to help our customers achieve lower emissions and we are well advanced in meeting this target.
Some examples of this strategy coming to life include a $200 million funding program with the Clean Energy Finance Corporation, which offers discounted asset finance to help medium sized business improve their energy efficiency.
We’ve also piloted the trading of tokenized carbon credits, using ANZ’s Australian-dollar stable coin. And we’ve signed a memorandum of understanding to develop a carbon farming and biodiversity project with our partners Qantas and Inpex that combines native reforestation and biomass harvesting.
This project is expected to provide opportunities for rural landowners in the wheatbelt community in Western Australia. It will also support our customers by contributing to supply, market making and distribution capabilities for carbon credits.
We were the first Australian bank to sign up to the Net Zero Banking Alliance. The NZBA commits us to aligning our lending portfolio with the goal of net zero emissions by 2050. We are on track to set targets for nine priority sectors. We commenced this work last year, setting emissions intensity targets for power generation and large-scale commercial real estate.
We’ve been continuing that work and later this year will be announcing targets for oil and gas and building products. Our targets, pathways and disclosures make very clear how we are aligning our lending to the Paris Agreement goals.
We’re confident we are well positioned for the future and looking forward to the opportunities to come.
Shayne Elliott is CEO of ANZ
This article has been adapted from speeches at ANZ's annual ESG Briefing. You can read his full speeches here.