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Investor Presentaiton

COMMERCIAL RESPONSES - CLIMATE CHANGE OUR COMMITMENTS Commitment Achieving a Paris Agreement aligned net zero emissions lending portfolio by 2050 Environmental financing target of $70bn by 2025 Cap thermal coal mining exposures at Sep 2019 levels, reduce thermal coal mining financing by 50% by 2028 to be effectively zero by 2035 Source 100% of our electricity consumption from renewable sources by 2025 8 Environmental operational performance targets: 2025 OUR EXPOSURES Progress Initial financed emissions estimate completed, pathway mapping under way (next slide) $42.5bn cumulative progress1 11.4% ($87m) reduction from FY19. Expected 50% reduction by 2026, and effectively zero by 2030 7% of electricity use from renewable sources in FY20 | Signed up to RE100 Detailed performance in 2020 Sustainability Report Energy generation EAD by fuel source² ($bn) Resource EAD by type ($bn) 7.79 11.54 7.13 7.26 7.37 10.47 10.64 1.16 ■Gold Ore Mining 1.45 ■Gas 0.59 0.94 0.98 0.52 1.03 9.33 0.12 0.35 0.12 80'0 0.58 0.62 1.15 ■Metallurgical Coal 0.75 0.89 0.74 ■ Coal 1.04 1.08 1.25 1.16 Mining 0.76 0.84 1.06 0.63 ■Thermal Coal Mining 0.87 0.67 ■ Mixed Fuel 1.94 1.74 2.39 1.87 1.93 2.21 0.76 2.18 ■Iron Ore Mining 2.05 ■ Other/Mixed 1.40 1.07 1.18 1.47 1.31 Renewable 0.89 1.03 Renewables ■Other Mining 1.40 ■ Hydro 72% of energy generation EAD 2.18 2.09 2.35 2.35 Wind at Sep 2020 ■Mining Services ■ Oil & Gas Extraction ³ 3.74 3.73 4.09 2.74 Mar 19 Sep 19 Mar 20 Sep 20 Mar 19 Sep 19 Mar 20 Sep 20 44 (1) Represented as a cumulative amount of new environmental finance since 1 October 2015. Detailed breakdown available in 2020 Sustainability Data Pack, available 11 November. (2) NAB methodology (based upon the 1993 ANZSIC codes) at net EAD basis. Excludes exposure to counterparties predominantly involved in transmission and distribution. Vertically integrated retailers included and categorised as renewable where majority of their generation activities sourced from renewable energy. More detail at https://www.nab.com.au/about-us/social-impact. (3) A significant contributor to the reduction of $1.3bn in the Resources portfolio since Sep-19 is AUD currency appreciation of USD denominated exposures and lower mark-to-market positions of treasury related products in the Oil & Gas extraction sector. National Australia Bank
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