As a financial institution we play an important role in supporting the transition to a low carbon economy.
We are committed to reporting transparently on our progress and have recently released an update on the assessed carbon emissions of our business lending portfolio. The indirect impacts of our lending activities show an overall 10 per cent decline in the carbon intensity of our lending portfolio from FY14 to FY15.
These insights, and the detailed diagnostics behind them, provide us with a robust quantitative basis to identify and act on key opportunities to improve our carbon performance over time.
In addition, we continue to seek opportunities to increase our exposure to renewable projects and at 30 June 2016 Commonwealth Bank’s lending exposure to renewable electricity generation was $2.2 billion, representing more than five times the Group’s exposure to direct coal-related electricity generation. This compares to renewable exposure of $1.4 billion at 30 June 2015, three times the exposure to direct coal-related electricity generation, and a year on year improvement of 63 per cent.
A number of case studies detailing some of the renewable energy projects the Commonwealth Bank supports can be found in our 2016 Corporate Responsibility Report.
The Group’s new corporate responsibility plan, Opportunity Initiatives, will also drive positive, lasting change under the three focus areas of education, innovation and good business practice. There are eight initiatives under these three areas and initiative eight, under good business practice, talks to our commitment to our role in limiting climate change to two degrees.