Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Westpac Banking Group (Westpac) is strategically engaged on climate policy and displays largely positive positions. The company issued support for a number of specific climate-related regulations in Australia in 2022 and 2023, including the National Energy Performance Strategy, and also assumes a positive position on the energy transition, supporting an increase in renewables and the decarbonization of the transport sector.
Top-line Messaging on Climate Policy: Westpac demonstrates positive top-line messaging on climate policy. The company supported the global economy’s transition to net zero emissions by 2050 and the goals of the Paris Agreement in its 2023 Climate Report, published in November 2023. Westpac also stated support for government regulation to respond to climate change in an April 2023 joint letter.
Engagement with Climate-Related Regulations: Westpac displays limited yet positive engagement with climate-related regulations in Australia in 2022 and 2023. The company appears supportive of both energy efficiency legislation and greenhouse gas emissions regulation in Australia. In its February 2023 consultation submission to Australia’s National Energy Performance Strategy, Westpac supported the development of a National Energy Performance Strategy and advocated for the introduction of a mandatory household energy rating and disclosure system for existing homes. Westpac also advocated for the Australian Government to implement measures to improve the energy performance of rental dwellings in an April 2023 joint statement. The company also supported the introduction of Australian CO2 emissions standards for light-duty vehicles in its November 2022 consultation submission to the National Electric Vehicle Strategy, although with no clear reference to level of ambition or the need for urgent action.
Positioning on Energy Transition: Westpac demonstrates mostly positive positions on the energy mix, supporting an increase in renewables and the decarbonization of the transport sector, but also appears to support the continued role of fossil gas in the energy mix. As reported in a July 2022 Australian Financial Review article, Westpac CEO, Peter King, supported the transition to a low carbon economy, stating that the energy transition provided an opportunity for banks, while backing the call for a credible economic plan to shift the most emissions-intensive industries towards net zero. Westpac also supported the transition towards renewables and advocated for improvements to battery storage infrastructure to guarantee a stable supply of energy for households in an April 2023 press release. The company likewise advocated for a number of measures, including financial incentives and government procurement policy, to support the rapid uptake of electric vehicles in Australia in a November 2022 consultation submission. In addition, in its December 2022 submission to the Inquiry into Australia's Transition to a Green Energy Superpower, Westpac called for a fast-tacked approval of renewable energy projects and for domestic solar PV production to be a priority under the National Reconstruction Fund, however, it did not comment on the need to reduce fossil fuels in its submission. Additionally, in a June 2024 sponsored AFR article, the CEO of Westpac Institutional Bank stated support for the government's Future Gas Strategy, which supports continued investments in fossil fuel exploration and production.
Industry Association Governance: Westpac has not published a transparent disclosure of its alignment with its industry associations’ positions on climate, though the company has disclosed a partial list of its industry association memberships on the ‘Industry Associations and Engagement’ page of its corporate website. Westpac maintains membership to several industry associations actively engaged on climate policy in Australia, including the Business Council of Australia (BCA), the Carbon Market Institute (CMI), and the Electric Vehicle Council (EVC). The BCA appears to have engaged in advocacy promoting a sustained role for fossil gas in the energy mix, while the CMI and EVC appear largely supportive of climate policy.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q4 2023.