Westpac is set to equip 800 of its staff with practical insights for advising clients on environmental, social, and governance (ESG) issues, responding to an increasing demand from companies aiming to transition to a net-zero future.
This initiative has been developed in partnership with the Monash Sustainable Development Institute and ClimateWorks Australia at Monash University. It is driven by a significant uptick in client requests for guidance and actionable strategies.
Anthony Miller, Chief Executive of Westpac Institutional Bank, emphasizes the critical need for robust ESG strategies, noting, “We are witnessing the growing necessity for companies to establish solid ESG frameworks to secure funding from investors. In less than a decade, this will become essential.”
Miller stresses that ESG considerations cannot be confined to a select few individuals within the bank. “We must ensure that every banker is well-versed in ESG principles, equipped with the language, science, and knowledge necessary to effectively support clients while also engaging in meaningful discussions and challenge their perspectives,” he states.
One of the program’s early participants, Jody Mitchelmore, has observed a shift in corporate approaches to ESG, highlighting that its relevance extends beyond environmental concerns. “The training provided a comprehensive overview of how climate change affects customers, while also addressing broader social impacts,” explains Mitchelmore, Westpac’s Head of Institutional and Corporate Credit.
He elaborates, “For instance, while a company involved in solar farm development aligns with our climate goals, we must also consider the ESG implications of construction, operation, and supply chain processes.”
Miller concurs, pointing out that social issues and human rights concerns are becoming increasingly integral, even as the world battles the urgent challenge of climate change. “Businesses will need to adjust their portfolio compositions and adopt new business models to facilitate a net-zero transition, particularly in emission-intensive sectors such as energy, industrial, and agriculture,” he says.
He concludes, “The ESG landscape is expansive and continually evolving, presenting both significant responsibilities and opportunities for us.”