Loan interest rate linked to the company’s indigenous reconciliation goals

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Eliza Mathews, head of sustainable finance at Westpac, said growth in sustainable finance is accelerating, citing an increase in global emissions from products such as sustainability-linked loans, green bonds and social bonds.

“We saw spending around $ 800 billion in the first half of this year, so that’s more than all of 2020 put together,” she said. “So we are set for an enormous year.”

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In 2021, Australia and New Zealand have spent $ 11 billion in sustainable finance so far, slightly less than all of the previous year.

Ms. Mathews said sustainability-related lending has allowed companies to show their commitment to customers and shareholders. “This really just goes to show how broad the possibilities are for us to look at different areas and create incentives for customers who want to focus on a specific material sustainability issue,” said Mathews.

One impact on the interest rate on the loan will be how quickly the registry goes through the stages of implementing a reconciliation action plan. The goals of the plan include developing a strategy for sourcing Aboriginal and Torres Strait Islands-owned businesses and increasing the percentage of Aboriginal and Torres Strait Islands employees.

Karen Mundine, General Manager of Reconciliation Australia said, “We look forward to joining NSW Land Registry Services in the [reconciliation action plan] Fellowship and encourage them to take courageous steps on their path to reconciliation. “

The growth in sustainability-related lending is due to investors becoming increasingly focused on environmental, social and governance issues, and banks becoming keen to participate in the growth.

Andrew Hinchliff, Group Executive, Institutional Banking and Markets at Commonwealth Bank, said sustainable financing is a top priority for the lender.

“The NSW Land Registry Services are to be commended for their commitment to indigenous reconciliation, workforce diversity and emissions reduction, and we are very proud to be able to help them pursue these ambitions,” he said.


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