Westpac updates on sustainability strategy, decarbonisation progress

Westpac announced its Sustainability Update on 2 December 2025, detailing progress across key environmental, social, and governance (ESG) areas. The bank released a new Climate Transition Plan and Sustainability Strategy in November 2025, emphasizing decarbonisation, customer resilience, housing affordability, and regional economic growth. A notable achievement includes remaining the largest financier to renewable projects in Australia and achieving zero exposure to thermal coal mining by September 2025. The bank reported over 130 engagements with institutional customers on climate transition plans in FY25 and a 37% increase in sustainable finance lending.

Regarding carbon-intensive sectors, Westpac requires in-scope customers to have interim Scope 1 & 2 decarbonisation targets aligned with the Paris Agreement. By September 2025, 55% of assessed customers were rated 'A' (Accept and monitor CTP execution), while 9% were rated 'D' (Decline new or renewed finance). The bank also reported a 39.4% increase in sustainable finance lending (TCE) to A$39.4bn and a 22.3% increase in bond facilitation to A$22.3bn by September 2025, demonstrating substantial growth in its sustainable finance activities. These efforts contribute to its goal of providing A$55bn in sustainable lending and A$40bn in sustainable bond facilitation by 2030.