Key findings

A research analysis by Market Forces indicates that an overwhelming majority of Australian retail banks—85 out of 103—do not provide any finance to coal, oil, and gas. Conversely, 10 retail banks were found to have committed AU$74.4 billion in finance to fossil fuel companies globally in 2023. Since the signing of the Paris Agreement to limit global warming, these ten institutions have committed a total of AU$752.6 billion to fossil fuels between 2016 and 2023. This group includes five international banks providing retail services in Australia, led by Bank of China, HSBC, and ING, which together committed AU$66.2 billion in 2023.

Within Australia, ANZ and NAB were identified as the largest financiers of fossil fuels in 2023, providing AU$2.6 billion and AU$2.4 billion respectively. Macquarie Bank followed as the third largest, committing $1.3 billion, while Westpac provided more than $1 billion and Commonwealth Bank of Australia (CBA) provided $850 million. The report notes that the “big four” banks—ANZ, CBA, NAB, and Westpac—along with their subsidiaries, dominate the domestic market, accounting for more than 80% of mortgages and 72% of the banking sector as of 2022. Many customers of smaller brands, including Ubank, St. George, Bank of Melbourne, BankSA, and Suncorp, may be unaware that their banks are owned by these larger institutions.

A United Nations study, “Peoples’ Climate Vote,” found that 69% of Australians desire a rapid transition from coal and gas to clean energy. Furthermore, 57% of Australians believe their bank is guilty of “greenwashing” and want them to adopt more sustainable practices. The analysis suggests that for consumers concerned about climate change, there are numerous options for financial institutions that align with their values. Market Forces clarifies that it is not a financial adviser and suggests individuals seek independent advice before making decisions regarding their money.

Compare banks

This section details the financing positions of banks active in the fossil fuel sector. In 2023, Bank of China was the largest financier with AU$21.7 billion, followed by HSBC with AU$19.4 billion and ING with AU$18.8 billion. Domestic institutions like Rabobank also contributed significantly, with AU$5.8 billion committed. The report notes that while CBA updated its policies in 2024 to restrict fossil fuel expansion financing, loopholes may allow continued support for companies involved in expansion, such as Glencore. Macquarie Bank disputed its total figure as an overstatement due to estimation methods for undisclosed transaction shares, but the report notes the bank did not provide evidence to justify a departure from the standard methodology.

Retail banks in Australia that are not financing fossil fuels

A significant portion of the Australian banking market has no exposure to fossil fuels. Institutions such as Adelaide Bank, Bank Australia, and Bendigo Bank have explicit policies against providing finance to coal, crude oil, or natural gas projects. Bank Australia stated its commitment was a response to customer demand for climate action. Similarly, Bank of Queensland Group (including ME Bank) has committed to no further financing of equipment directly involved in fossil fuel extraction and expects to cease such funding entirely by 2024. Other customer-owned institutions, including Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank, maintain strict policies against lending to the fossil fuel industry.

Methodology

The research analysed finance provided to global fossil fuel companies by retail banks in Australia between 2016 and 2023. Data for major international and domestic banks was sourced from the 2024 “Banking on Climate Chaos” (BOCC) research, which assesses the world’s 60 largest banks. For institutions outside the BOCC scope, Market Forces applied the same methodology. For diversified companies involved in sectors outside the fossil fuel supply chain, the total transaction value was proportionally adjusted based on the company’s business involvement in fossil fuels. Currency conversions from USD to AUD used annual average exchange rates sourced from the Reserve Bank of Australia.

Banks’ latest reported fossil fuel exposure

The analysis also reviews banks’ self-reported “fossil fuel exposure” for the latest financial year. As of September 2024, ANZ reported $13.8 billion in exposure, though the presence of fossil fuel electric utilities in its $13.1 billion “Electric Utilities” exposure suggests the actual total is higher. Westpac reported $9.2 billion in total exposure, while CBA reported $9.4 billion as of June 2024. The report highlights that cross-bank comparisons are difficult due to inconsistent reporting methodologies; some banks report full lending exposure, while others report only predicted losses or “exposure at default.”