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Commonwealth Bank reaffirms net zero commitment amid gas industry lending debate

Published 29/08/2024, 12:58 pm
© Reuters.  Commonwealth Bank reaffirms net zero commitment amid gas industry lending debate
CBA
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Commonwealth Bank of Australia (ASX:CBA) chief executive Matt Comyn has reaffirmed the bank's commitment to achieving net zero by 2050 while defending its lending practices to the gas industry.

Addressing the House of Representatives Economics Committee on Thursday, Comyn emphasised that the bank was "not anti-gas" and remained open to financing the industry.

However, Comyn made it clear that the CBA's support for the gas sector was contingent upon companies demonstrating their plans to reduce carbon emissions.

“We have to weigh up the considerations about what is in the best interests of Australia, our customers, our communities alongside the commitments we have made to get us to net zero by 2050,” Comyn stated.

Lending policy concerns

The comments were made in response to concerns raised by Liberal National Party MP Garth Hamilton, who argued that stricter lending policies could lead to higher gas costs for Australian consumers.

Comyn underscored that while the CBA was committed to Australia’s economic development and growth, it must also ensure that its lending practices aligned with its sustainability goals.

The discussion comes amid broader scrutiny of major banks' lending to coal, gas and oil companies. While some institutions have banned loans for new thermal coal customers and upstream oil and gas projects, others are significantly reducing their exposure to fossil fuels.

CBA, which has maintained its total committed exposure to fossil fuel extraction at 0.2%, was recently commended by climate activist group Market Forces for reducing its lending exposure to oil and gas extraction clients by A$700 million in the past year.

Comyn also took the opportunity to reject criticisms of the bank's relationship with credit card company Mastercard (NYSE:MA), stating, "I am not a lickspittle for Mastercard," in response to allegations of undue influence.

Read more on Proactive Investors AU

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