National Australia Bank

In terms of its approach towards impact management, National Australia Bank acknowledges that its financing activities have both positive and negative impacts. It assigns the responsibility for sustainability issues to the board-level Risk and Compliance Committee. The financial institution publicly commits to gender equality and women’s empowerment, discloses several targets on gender equality and women’s empowerment by 2025 and discloses the ratio of basic salary and remuneration of women to men in its operations for each employee category. National Australia Bank discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.

As a member of the Net-Zero Banking Alliance, National Australia Bank has set a target of net-zero financed emissions by 2050. It discloses absolute financed emissions and the underlying data quality and coverage. The bank discloses that the companies that emit the largest amount of greenhouse have been identified as priorities to engage with on climate change, including on the topic of alignment with the Paris Agreement. National Australia Bank invested AUD 31.7 billion in green infrastructure and aims to finance AUD 35 billion by 2025. The bank discloses nature- and biodiversity-related impacts as one of its engagement topics with companies to which it provides financial services.

National Australia Bank has an opportunity to further clarify how sustainability performance criteria are included in the annual reward framework for its executives. It could also link the remuneration of its management team to sustainability performance criteria. In terms of female representation in leadership positions, women are underrepresented on the board of directors where only 3 out of 9 board members are women. National Australia Bank discloses that it has a target to close the gender pay gap, however there is no evidence that it discloses the actions taken to address any pay gaps. The financial institution could disclose its approach to engagement with clients and investees on sustainability and impact topics across its financing activities.

National Australia Bank has an opportunity to further clarify how sustainability performance criteria are included in the annual reward framework for its executives. It could also link the remuneration of its management team to sustainability performance criteria. In terms of female representation in leadership positions, women are underrepresented on the board of directors where only 3 out of 9 board members are women. National Australia Bank discloses that it has a target to close the gender pay gap, however there is no evidence that it discloses the actions taken to address any pay gaps. The financial institution could disclose its approach to engagement with clients and investees on sustainability and impact topics across its financing activities.

National Australia Bank could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. It could also disclose whether it collectively engages with companies to which it provides financial services on the topic of alignment with the Paris Agreement. While the financial institution expects its investees to set a 1.5°C-aligned strategy, it has an opportunity to make this a requirement. Furthermore, National Australia Bank could align its green infrastructure with internationally recognised frameworks. No evidence was found regarding the financial institution’s approach to fossil fuels that spans across the fossil fuel value chain and its financing activities, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects.

National Australia Bank has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. The bank could also disclose the proportion of its total direct operations workforce for each employee category by age group. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.