Westpac to increase sustainable lending by $2b

Westpac is boosting its sustainable lending by $2 billion to meet rising demand from businesses and farmers looking to meet climate targets.

The bank has increased the sum to $9 billion by 2027 and the money will go to firms needing finance for sustainable projects and goals.

Head of sustainable finance Joanna Silver said New Zealand was a country of exporters, and export markets required businesses to lower emissions.

She said the bank was helping them do that.

"There's a big step up in sustainability over the last few years, particularly from our business and farming customers who really want to invest in sustainability to make their businesses more resilient and access those all important global markets.

"We've had a lot of engagement right across the country and across all sectors on sustainability. A good example is our sustainable farm loan, which we launched about 18 months ago. We've now got 43 percent of our Agri business term lending book aligned to long term sustainability goals."

Silver said borrowers were held accountable by the bank and if they do not achieve their green goals the loan was no longer sustainable.

Westpac had also increased lending for affordable housing by $1 billion.

Finance would go to community and iwi housing providers and customers buying homes through shared ownership schemes.

"We want to make sure that Kiwi home owners get a fair deal from people delivering homes for them. So, structures like shared equity and leasehold, we look very carefully at their contract between ourselves and the housing provider or the property developer to make sure that homeowner is protected throughout the transaction," said Silver.

The bank said it would also invest $30 million in the community by backing organisations including the country's rescue helicopters, the NZ Landcare Trust, and BLAKE Trust.

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