Australian and New Zealand ESG Update

Climate Vulnerability Assessments due from big banks in late 2021

Some large financial institutions in Australia are to produce their very first Climate Vulnerability Assessments (CVAs) later in 2021. The results will be published in 2022. The CVA looks at two specific scenarios in terms of how the global reaction to climate change might unfold, with the reports assessing the physical and transitory risks associated with each scenario and how a bank’s vulnerability might play out, alongside the economy.

CFA Societies Australia launches ESG investing certification

A world-first ESG investing certification for Australia is being launched by CFA Societies Australia. The CFA Institute Certificate in ESG Investing in Australia provides investment professionals a base level of knowledge and skills for the integration of ESG factors into their investment practices. The certificate is an online self-guided course requiring 130 hours of study and ending in an exam of 100 questions. This certificate is the fist of its kind made available globally.

CBA shareholder takes bank to court over fossil fuel financing

A Commonwealth Bank of Australia (CBA) shareholder has taken the bank to the Federal Court of Australia regarding its choice to finance fossil fuel and gas projects despite the potential climate harm. The lawsuit seeks access to all documents CBA has created on the projects, for example, the Permiam Highway Pipeline project and Santos’ acquisition of the Barossa Gas Field. The shareholder is after the assessments of the environmental and social impacts of the projects.

Accountants commit to net-zero

CPA Australia and Chartered Accountants Australia and New Zealand (CA ANZ) have agreed with 10 global and national accounting bodies to commit to net-zero greenhouse gas emissions within their own organisations. The initiative is part of The Prince of Wales’ Accounting for Sustainability (A4S) Project Accounting Bodies network (ABN).

CBA launches carbon tracking feature

CBA can now offer personalised carbon footprint tracking for customers based on spending data, as part of a partnership with fintech start-up CoGo. First, a select group of retail customers will be able to view their carbon footprint via the CommBank app and offset their last month’s transactions by buying carbon credits. From 2022, this feature will be available to all retail customers, then later to small business customers.

ASFA aiming for net-zero by 2050

The Association of Superannuation Funds of Australia (ASFA) has published a discussion paper calling out the risks of climate change and investment portfolio influence and performance of superannuation funds. Ther paper looks into reasons superannuation funds should consider climate change risk during decision-making and highlighting the value of mitigation strategies to reduce risks.