Loan interest rate linked to the company’s Indigenous reconciliation goals
Westpac Chief Sustainability Officer Eliza Mathews said the growth of sustainable finance was accelerating, citing an increase in global issuance of products such as sustainability loans, green bonds and social bonds.
“We’ve seen issuance for the first half of this year of around $ 800 billion, so that’s higher than the whole of 2020 combined,” she said. “So we are ready for a huge year. “
There have been $ 11 billion in sustainable finance issuance in Australia and New Zealand so far in 2021, slightly less than last year combined.
Ms Mathews said sustainability-linked loans allow companies to show their commitment to customers and shareholders. “In reality, it shows how wide the opportunities are, how we can look at different areas and drive improvement for customers who want to focus on a specific material durability issue,” Ms. Mathews said.
An influence on the loan interest rate will be how quickly the registry moves through the stages of implementing a reconciliation action plan. The plan’s goals include developing a sourcing strategy from Aboriginal and Torres Strait Islander-owned businesses, and increasing the percentage of Aboriginal and Torres Strait Islander employees.
Reconciliation Australia Managing Director Karen Mundine said: “We look forward to welcoming NSW Land Registry Services to the [reconciliation action plan] community and encourage them to take courageous steps on their journey to reconciliation.
The growth in sustainability-linked lending comes as investors increasingly focus on environmental, social and governance issues, with banks keen to participate in the growth.
Andrew Hinchliff, Commonwealth Bank group director for institutional banking and markets, said sustainable finance was a key priority for the lender.
“NSW Land Registry Services is to be commended for its commitment to Indigenous reconciliation, employee diversity and emissions reduction, and we are very proud to be able to play a role in helping them pursue these ambitions,” he said. declared.