Teachers Mutual Bank Limited reaches $8.3 billion ESG milestone

3 November 2021: Teachers Mutual Bank Limited continues to break ground as one of Australia’s leading socially responsible banks, releasing new data that shows socially responsible banking is a driver of business success.

An independent review of Teachers Mutual Bank Limited’s operations has shown that in the past six years, the Bank has driven down its emissions by nearly 50% despite growing assets by 76% and doubling offices from six to 12. Teachers Mutual Bank Limited has been net zero for its direct greenhouse emissions (Scope 1 and Scope 2) since 2012.

At the same time, the Bank’s independently Certified Responsible Investment products have reached $8.3 billion, a massive increase of 84% in the past 12 months alone.

Chief Executive Officer, Steve James, said: “Social responsibility drives everything we do – our business practices, our people and our products. We prove that social responsibility can make the bank, not break it and that the business community can make a meaningful contribution to climate and our society, while experiencing profitable growth. This is the future of banking, and we intend to be leading it.”

The review conducted by sustainability advisory firm, The Incus Group, revealed that Teachers Mutual Bank Limited’s emission intensity (tonnes of COշ per $ assets) reduced by 70%.

“There is no big secret to how we have achieved this. We have invested more than $850,000 since 2015, with 83% of this investment being on solar PV, LED lights and two electric vehicles. These actions have allowed us to cut our direct emissions footprint by 47% in six years,” said Steve James.

These results come after Teachers Mutual Bank Limited was the first bank to sign on to the Climate League 2030 initiative alongside major investors. The initiative, organised by the Investor Group on Climate Change, has a goal to reduce Australia’s emissions by 45% by 2030.

In the 24 months to 30 June 2021, the Bank’s total RIAA Certified product portfolio increased by 295% ($6.2 billion) from $2.1bn to $8.3bn, and in the 12 months to 30 June 2021, the Responsible Investment portfolio increased by 84% ($3.8billion) from $4.5bn to $8.3bn.

Steve James said the Bank’s use of third-party verification by RIAA provides Members with reassurance that their money is being invested responsibly and making a positive difference to the world.

“Our Members tell us that it’s important for them to know that their money will not be lent to industries that pollute the planet. Nor will the money they borrow from us come from damaging industries,” he said.

“Every mortgage and deposit account we open is a Certified Responsible Investment product, and these fantastic results show that joining our bank means you can align your money with your values – at no extra cost to the consumer.”

Read the full Energy and Emissions report

 

About RIAA Certification

Wholesale DIP, STDs and retail mortgages and deposits have been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program.

See www.responsibleinvestment.org for details. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.