Australian banks continue to bankroll forest destruction that is cutting into threatened species habitat, increasing the severity of climate impacts and weakening the agricultural sector, new analysis by the Australian Conservation Foundation shows.
In the last financial year ACF identified 82 cases and a total of 16,540 hectares of deforestation linked to major Australian banks through mortgages.
The analysis reveals:
- NAB was linked to the most hectares of forest destruction, followed by the Commonwealth Bank, ANZ, Bendigo Bank, Westpac and Rabobank.
- 99% of the 16,540 hectares cleared were linked to agriculture.
- 94% of the cases were found in NSW and Queensland.
- Habitat for endangered species like koalas, greater gliders and glossy black cockatoos is being destroyed.
- More than 11 million tonnes of greenhouse gas emissions were released by this deforestation, yet banks largely ignore these emissions in their climate reporting.
“Deforestation poses significant risks to Australia’s economy, especially agribusinesses,” said Max Hamra, ACF’s Policy Analyst - Corporate Responsibility.
“Farmers are on the frontline of extreme weather and the damage to soil health and the water cycle that occurs when forests are bulldozed.
“Banks have a significant role to play in ending deforestation in Australia. Their failure to act risks the collapse of ecosystems underpinning the stability of the financial system, the food system and countless other systems that depend on nature being healthy.”
On 14 October CommBank shareholders will vote on a shareholder resolution calling on the bank to disclose the steps it will take to become deforestation-free.
Despite shareholders delivering a substantial vote in favour of ANZ disclosing its exposure to deforestation at its AGM last year, the bank has failed to signal any change in direction on nature risk. Resolutions have been lodged with ANZ for its upcoming AGM.
ACF has reported 32 of the 82 cases to authorities for potential breaches of federal and/or state laws.
Read Financed deforestation: The banks still backing the bulldozers